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Question 1. Which article of the REALTOR® Code of Ethics specifically addresses the duty to provide equal professional service without discrimination? A) Article 5 B) Article 10 C) Article 12 D) Article 15 Answer: B Explanation: Article 10 of the Code of Ethics obligates REALTORS® to provide equal professional service to all persons regardless of protected class. Question 2. The “Golden Rule” is found in which part of the REALTOR® Code of Ethics? A) The Preamble B) Article 1 C) Standard of Practice 1‑ 1 D) The Grievance Procedure Answer: A Explanation: The Preamble contains the aspirational “Golden Rule” language that guides ethical conduct. Question 3. Which of the following is NOT one of the seven protected classes under the Federal Fair Housing Act? A) Age
B) National origin C) Disability D) Religion Answer: A Explanation: Age is not a protected class under the Fair Housing Act; the protected classes are race, color, religion, sex, national origin, familial status, and disability. **Question 4. Under Standard of Practice 1‑1, a REALTOR® must disclose to a client any: ** A) Personal interest in a property B) Commission rate of a competing broker C) Local school rankings D) Neighborhood crime statistics Answer: A Explanation: SOP 1‑1 requires disclosure of any personal interest a REALTOR® has in a property that could affect the client’s decision. Question 5. Which grievance‑resolution method is considered the least formal and is encouraged before filing a formal grievance? A) Mediation B) Arbitration C) Litigation
Explanation: SOP 3‑1 outlines the responsibilities of a REALTOR® who coordinates the transaction process, including documentation and communication. **Question 8. The “steering” practice is prohibited because it: ** A) Increases market competition B) Violates the duty of confidentiality C) Discriminates against protected classes D) Reduces commission for the listing agent Answer: C Explanation: Steering directs buyers or renters toward or away from certain neighborhoods based on protected class, violating Fair Housing laws. Question 9. Which article requires REALTORS® to cooperate with other brokers unless a written agreement provides otherwise? A) Article 12 B) Article 15 C) Article 16 D) Article 17 Answer: B Explanation: Article 15 mandates cooperation among REALTORS® and outlines compensation expectations unless a written agreement states otherwise.
**Question 10. A REALTOR® discovers lead‑based paint in a home built before
- Under federal law, the agent must: ** A) Remediate the hazard before listing B) Disclose the presence of lead‑based paint to the buyer C) Offer a discount on the purchase price D) Ignore it if the buyer does not ask Answer: B Explanation: The Lead‑Based Paint Disclosure Rule requires the seller and agent to disclose known lead hazards to prospective buyers. Question 11. Which of the following best describes fiduciary loyalty? A) Keeping client information confidential B) Acting in the client’s best interest above all else C) Disclosing all material facts D) Providing equal service to all parties Answer: B Explanation: Fiduciary loyalty means the agent must place the client’s interests ahead of the agent’s own interests. **Question 12. The grievance committee’s primary role is to: ** A) Conduct the hearing panel B) Determine the appropriate penalty after a hearing
A) Conduct the final arbitration hearing B) Review complaints and recommend disciplinary action C) Draft new Standards of Practice D) Mediate disputes between clients and brokers Answer: B Explanation: The Grievance Committee evaluates grievances, determines if a violation occurred, and recommends sanctions to the hearing panel. Question 3. Which Standard of Practice clarifies the duty to disclose known material facts about a property? A) SOP 2‑ 1 B) SOP 3‑ 2 C) SOP 1‑ 2 D) SOP 4‑ 3 Answer: C Explanation: SOP 1‑2 requires REALTORS® to disclose all known material facts that could affect the buyer’s decision. Question 4. Under the Fair Housing Act, “steering” is defined as: A) Offering a higher commission to a buyer’s agent for a specific buyer class B) Guiding a prospective buyer toward or away from a neighborhood based on protected class
C) Refusing to show a property to any buyer who does not pre‑qualify D) Listing a property at an inflated price to limit access Answer: B Explanation: Steering involves influencing a buyer’s choice of location based on race, color, religion, sex, etc., which is prohibited. Question 5. Which of the following actions would violate Article 15 of the Code of Ethics? A) Refusing to cooperate with a broker who offers a higher commission B) Making false statements about another REALTOR®’s services C) Accepting a referral fee from a lender without disclosure D) Ignoring a client’s request for a home inspection Answer: B Explanation: Article 15 requires REALTORS® to avoid false or misleading statements about other real estate professionals. Question 6. A REALTOR® who discovers a potential conflict of interest in a transaction must: A) Hide the conflict to avoid losing the deal B) Disclose the conflict to all parties in writing C) Withdraw from the transaction without notice D) Seek a higher commission to compensate for the risk
Explanation: Using a safety app to monitor visitor sign‑ins enhances security and provides real‑time alerts. Question 9. In the context of fiduciary duties, “confidentiality” means: A) Sharing client information only with the buyer’s agent B) Keeping all client information private unless the client authorizes disclosure C) Disclosing client financial details to the lender for loan approval D) Publishing client information on the agent’s website for transparency Answer: B Explanation: Confidentiality obligates the agent to protect client information unless the client permits disclosure. Question 10. When marketing a property, a REALTOR® must ensure that advertising materials do not: A) Include the property’s MLS number B) State the square footage of the home C) Use language that suggests a preference for a protected class D) Mention recent renovations Answer: C Explanation: Advertising must not contain language that indicates a preference or limitation based on protected classes, as this violates Fair Housing.
Question 11. Which of the following best illustrates the duty of “loyalty” under fiduciary responsibilities? A) Offering a client the highest possible commission rate B) Recommending a property that the agent personally owns without disclosure C) Prioritizing the client’s best interest over the agent’s own financial gain D) Refusing to work with a buyer who is not pre‑qualified Answer: C Explanation: Loyalty requires the agent to act in the client’s best interest, even when it conflicts with the agent’s own interests. Question 12. The Dodd‑Frank Act primarily impacts which aspect of real estate practice? A) Property tax assessments B) Mortgage lending and consumer protection C) Zoning regulations D) Homeowners association governance Answer: B Explanation: The Dodd‑Frank Wall Street Reform and Consumer Protection Act introduced stricter regulations for mortgage lending and consumer protection. Question 13. A REALTOR® who discovers that a client is being offered a higher price for a property by a relative must: A) Keep the information confidential to avoid conflict
C) The market value of a property D) The services offered by another REALTOR® Answer: D Explanation: Article 16 prohibits false or misleading statements about other REALTORS® and their services. Question 16. Which of the following is a required disclosure under the federal Lead‑Based Paint Rule? A) The presence of any mold in the property B) The date the home was constructed C) Whether the property was built before 1978 D) The square footage of the home Answer: C Explanation: Federal law requires disclosure of whether a home was built before 1978, as it may contain lead‑based paint. Question 17. The primary purpose of a transaction checklist for a client is to: A) Increase the agent’s commission B) Ensure the client receives a copy of every document signed C) Provide a clear roadmap of steps and deadlines in the transaction D) Replace the need for a purchase agreement Answer: C
Explanation: A transaction checklist helps clients understand the process, track progress, and meet deadlines. Question 18. In the context of online presence, a REALTOR® should avoid: A) Posting client testimonials without permission B) Sharing market updates on social media C) Including a professional headshot on their website D) Linking to the local MLS search portal Answer: A Explanation: Posting client testimonials without consent violates privacy and can breach ethical standards. Question 19. Which of the following best describes “disparagement” of a competitor? A) Comparing commission rates objectively B) Stating that a competitor’s services are “unprofessional” without factual basis C) Referring a client to another agent for a specialty service D) Highlighting one’s own experience and credentials Answer: B Explanation: Disparagement involves making false or unsubstantiated negative statements about another professional.
B) Agents who conduct open houses and showings in high‑risk areas C) Real estate professionals who wish to become brokers D) Anyone handling escrow funds Answer: B Explanation: Many MLSs and brokerages require the 3‑Hour Safety Course for agents conducting showings and open houses to improve personal safety. Question 23. Which of the following is a correct statement about the “broker’s price opinion” (BPO)? A) It is a legally binding contract B) It must be disclosed to all parties before use C) It can be used as a substitute for an appraisal in a mortgage transaction D) It is only permissible if the broker is also the listing agent Answer: B Explanation: BPOs must be disclosed to all parties to avoid misrepresentation, as they are not formal appraisals. Question 24. When a client requests a “dual agency” relationship, the REALTOR® must: A) Accept without disclosure because it saves time B) Obtain written consent from both buyer and seller after full disclosure of the conflict C) Refuse to act as a dual agent under any circumstances
D) Only represent the seller and keep the buyer’s information confidential Answer: B Explanation: Dual agency is permissible only with informed, written consent from all parties after full disclosure of the potential conflict. Question 25. Under Standard of Practice 6‑1, a REALTOR® must: A) Provide a written receipt for all deposits received B) Disclose any personal interest in a property before cooperating with another broker C) Offer a discount on commission to first‑time homebuyers D) Submit a marketing plan to the MLS for approval Answer: B Explanation: SOP 6‑1 requires disclosure of any personal interest in a property before cooperating with another broker. Question 26. A REALTOR® who advertises a property as “perfect for families with children” may be violating which principle? A) Disclosure of material facts B) Fair Housing non‑discrimination C) Duty of loyalty D) Confidentiality of client information Answer: B
Question 29. In a transaction, a REALTOR® must keep client funds in: A) Their personal checking account B) A trust or escrow account separate from personal funds C) The brokerage’s general operating account D) A savings account under the client’s name Answer: B Explanation: Client funds must be held in a trust or escrow account to protect them and comply with fiduciary duties. Question 30. Which of the following actions demonstrates compliance with Article 12 (Duties to the Public)? A) Refusing to show a property to a buyer of a certain race B) Providing accurate and truthful advertising about a property’s condition C) Offering a higher commission to a buyer’s agent for a specific client group D) Ignoring a complaint from a consumer about misleading information Answer: B Explanation: Article 12 requires REALTORS® to act honestly and provide truthful information to the public. Question 31. A REALTOR® who discovers a potential environmental hazard (e.g., radon) on a property must: A) Remediate the issue before listing the property
B) Disclose the known hazard to prospective buyers and the seller C) Keep the information confidential to avoid scaring buyers D) Offer a discount on the purchase price without disclosure Answer: B Explanation: Disclosure of known environmental hazards is required to ensure informed decision‑making. Question 32. Which of the following is an example of “blockbusting”? A) Encouraging owners to sell because a minority group is moving into the neighborhood B) Offering a lower price to a buyer who is a first‑time homeowner C) Refusing to list a property because of its condition D) Providing a buyer with a home warranty Answer: A Explanation: Blockbusting involves inducing owners to sell by suggesting that property values will decline due to incoming protected‑class buyers. Question 33. Under the Code of Ethics, a REALTOR® must not accept compensation from a third party for: A) Referring a client to a mortgage lender without disclosure B) Providing a home inspection service C) Advertising on social media
