NAR Code of Ethics

Question 1

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Answer 1

CLIENT FIRST

protect and promote you client’s interests, but treat all parties honestly

ex. a seller’s agent negotiates aggressively for the seller but still honestly discloses property defects to buyers

Question 2

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Answer 2

HONESTY

avoid exaggeration, misrepresentation or hiding important facts about a property

ex. an agent knows the roof leaks, but does not hide the information from the buyer

Question 3

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Answer 3

COOPERATION

cooperate with other brokers unless cooperation is not in the client’s best interest

ex. a listing agent allows buyer agents to show the property and share commission

Question 4

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Answer 4

OWNERSHIP

disclose any personal ownership interest in property you are buying or selling

ex. A realtor buying a property for themselves must tell the seller they are a licensed agent

Question 5

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Answer 5

CONFLICT

do not provide professional services for property when you have an undisclosed interest

ex. an agent cannot secretly own part of a property they are recommending to a client

Question 6

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Answer 6

REFERRAL

disclose any financial benefits received from recommending services like lenders or inspectors

ex. an agent tells a client they receive a referral fee from a specific mortgage broker

Question 7

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Answer 7

COMPENSATION

do not accept compensation from more than one party without informed consent from all parties

ex. an agent representing a buyer cannot secretly accept payment from the seller

Question 8

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Answer 8

ESCROW

keep client funds separate and properly accounted for

earnest money is placed in a trust account instead of the agent’s personal account

Question 9

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Answer 9

IN WRITING

make sure agreements are clear and in writing whenever possible

ex. a listing agreement clearly states commission and contract terms

Question 10

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Answer 10

FAIR HOUSING

do not discriminate based on protected classes

ex. an agent cannot refuse to show homes to someone because of race or religion

Question 11

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Answer 11

COMPETENCE

only provide services you are competent to perform

ex. A residential agent refers a commercial deal to a commercial specialist

Question 12

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Answer 12

ADVERTISING

be truthful in advertising and marketing

ex. A listing ad cannot claim a house has 5 bedrooms when it only has 3

Question 13

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Answer 13

LAW

do not practice law unless you are legally licensed to do so

ex. an agent should not draft custom legal clauses outside standard forms

Question 14

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Answer 14

COMPLIANCE

cooperate with investigations by realtor boards regarding ethics complaints

A realtor must provide documents if the local board investigates an ethics violation

Question 15

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Answer 15

REPUTATION

do not make false or misleading statements about other real estate professionals

ex. An agent cannot falsely claim another broker is dishonest to steal clients

Question 16

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Answer 16

SOLICITATION

respect other realtors’ exclusive relationship relationships with clients

ex. an agent cannot solicit a client who already signed an exclusive listing agreement with another broker

Question 17

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Answer 17

ARBITRATION

resolve disputes with other realtors through arbitration instead of lawsuits when appropriate

ex. Two brokers arguing over commission submit the dispute to the realtor board instead of court.