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Question 1. Which article of the NAR Code of Ethics requires REALTORS® to treat all parties honestly and fairly? A) Article 1 B) Article 4 C) Article 10 D) Article 15 Answer: C Explanation: Article 10 specifically addresses the duty to provide equal professional service without discrimination. Question 2. Under the Fair Housing Act, which of the following is NOT a protected class? A) Age B) Disability C) Religion D) National origin Answer: A Explanation: Age is not listed among the seven protected classes; the others are protected. Question 3. A REALTOR® discovers a conflict of interest because they own a share of a property they are listing. What is the proper action? A) Hide the ownership and proceed. B) Disclose the interest to all parties. C) Withdraw from the transaction without disclosure. D) Ask the client to waive disclosure.
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Answer: B Explanation: Full disclosure of any personal interest is required to avoid ethical violations. Question 4. Which Standard of Practice clarifies the duties owed to clients regarding confidentiality? A) SOP 1- 1 B) SOP 2- 2 C) SOP 3- 1 D) SOP 5- 5 Answer: A Explanation: SOP 1-1 expands on Article 1, emphasizing confidentiality obligations. Question 5. The “Golden Rule” in the Code of Ethics’ Preamble refers to: A) Maximizing commissions. B) Treating others as you would like to be treated. C) Prioritizing the seller’s interests. D) Avoiding all negotiations. Answer: B Explanation: The Preamble’s aspirational goal mirrors the Golden Rule of mutual respect. Question 6. Which of the following practices is considered “steering”? A) Showing all available homes to a buyer. B) Refusing to show certain neighborhoods based on race.
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Question 9. The grievance process begins with: A) Filing a lawsuit. B) Submitting a written grievance to the local association. C) Requesting mediation. D) Appealing to the state MLS. Answer: B Explanation: A written grievance initiates the formal disciplinary process. Question 10. Which of the following is a required element of a real-estate transaction checklist? A) Agent’s personal opinions on the property. B) List of all open houses held. C) Dates of contract deadlines. D) Agent’s commission rate. Answer: C Explanation: Tracking contract deadlines ensures timely performance and compliance. Question 11. The Dodd-Frank Act primarily impacts which aspect of real estate practice? A) Property appraisal standards. B) Mortgage lending and consumer protection. C) Home inspection procedures. D) Title insurance requirements. Answer: B
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Explanation: Dodd-Frank introduced reforms to mortgage lending and consumer safeguards. Question 12. Which of the following marketing practices would violate the Fair Housing Act? A) Using inclusive language in listings. B) Advertising a “family-friendly” community without specifying protected classes. C) Highlighting school district quality. D) Including a photo of the interior. Answer: B Explanation: “Family-friendly” can be interpreted as discriminatory unless truly neutral. Question 13. When a client asks for a “quick sale” at a low price, the REALTOR® should: A) Agree without discussion. B) Explain the market and advise on realistic pricing. C) Refuse to list the property. D) Reduce the commission. Answer: B Explanation: Providing market analysis fulfills the duty of competence and honesty. Question 14. Which of the following is an example of a “material fact” that must be disclosed? A) The neighbor’s favorite color. B) An upcoming zoning change affecting the property.
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A) Home warranty. B) Good Faith Estimate (now Loan Estimate). C) Property tax bill. D) Title insurance policy. Answer: B Explanation: RESPA mandates the Loan Estimate to disclose settlement costs. Question 18. Which of the following best describes “redlining”? A) Offering lower rates to first-time buyers. B) Refusing services to a geographic area based on race or ethnicity. C) Providing a discount for cash offers. D) Highlighting a property’s energy efficiency. Answer: B Explanation: Redlining is discriminatory denial of services based on location demographics. Question 19. A REALTOR®’s fiduciary duty of loyalty means: A) Prioritizing the client’s interests above the agent’s own. B) Always accepting the highest commission. C) Sharing all client information with other agents. D) Refusing to negotiate. Answer: A Explanation: Loyalty requires the agent to act solely in the client’s best interest.
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Question 20. Which of the following is NOT a component of effective client communication? A) Identifying preferred contact method. B) Setting response time expectations. C) Sending only one email after closing. D. Providing regular transaction updates. Answer: C Explanation: Ongoing communication is essential; a single post-closing email is insufficient. Question 21. An online review that contains false accusations against a competitor violates which article? A) Article 7 B) Article 12 C) Article 15 D) Article 16 Answer: C Explanation: Article 15 prohibits false or misleading statements about other REALTORS®. Question 22. Which of the following best illustrates the duty to “provide equal professional service” under Article 10? A) Offering a discount only to friends. B) Showing only high-priced homes to a buyer of a particular ethnicity. C) Offering the same level of service to all clients regardless of protected class. D) Refusing to work with a buyer who prefers text messages.
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C) Increase the client’s purchase price. D) Refuse the referral. Answer: B Explanation: Disclosure of any additional compensation prevents conflicts of interest. Question 26. Which article requires REALTORS® to cooperate with other brokers when a buyer is represented? A) Article 4 B) Article 6 C) Article 15 D) Article 17 Answer: C Explanation: Article 15 obligates cooperation and appropriate compensation. Question 27. The “Loan Estimate” must be provided to the borrower within: A) 24 hours of application. B) 3 business days of application. C) 7 days of loan approval. D) 30 days of closing. Answer: B Explanation: RESPA requires the Loan Estimate within three business days of receiving a loan application.
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Question 28. Which of the following is a permissible way to use a client’s testimonial in marketing? A) Alter the wording to sound more positive. B) Use it without the client’s written consent. C) Publish it with the client’s name and permission. D) Share it only on private social media groups. Answer: C Explanation: Consent and accurate representation are required for ethical marketing. Question 29. The duty to “disclose all pertinent facts” falls under which fiduciary duty? A) Loyalty B) Confidentiality C) Disclosure D) Obedience Answer: C Explanation: Disclosure mandates sharing material information that could affect decisions. Question 30. An agent who performs a “dual agency” must obtain: A) Only the seller’s consent. B) Only the buyer’s consent. C) Written informed consent from both parties. D) No consent if the transaction is low-value.
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C) Duties to the Government. D) Duties to REALTORS®. Answer: C Explanation: Duties to the Government are not a distinct section of the Code. Question 34. A REALTOR® must keep client information confidential even after the transaction ends, unless: A) The client asks for it. B) The information becomes public record. C) Disclosure is required by law. D) The agent wants to use it for marketing. Answer: C Explanation: Confidentiality persists unless a legal requirement overrides it. Question 35. Which of the following is a required disclosure when a property is located in a flood-prone area? A) The average property tax. B) Flood zone designation and risk. C) The seller’s mortgage rate. D) The number of bedrooms. Answer: B Explanation: Flood risk is a material fact that must be disclosed. Question 36. Under Article 4, a REALTOR® must disclose to a buyer:
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A) The seller’s personal financial status. B) Any known material defect in the property. C) The agent’s personal opinion on the neighborhood. D) The commission split with the listing broker. Answer: B Explanation: Article 4 requires disclosure of material facts affecting value or desirability. Question 37. Which of the following actions would most likely be considered a violation of Article 12 (Duties to the Public)? A) Refusing to show a property to a person based on race. B) Providing a detailed market analysis. C) Holding an open house on a weekend. D) Sending a thank-you note after closing. Answer: A Explanation: Discriminatory refusal breaches the public duty of equal service. Question 38. A REALTOR®’s email signature should include: A) Personal political views. B) Full name, license number, and brokerage. C) All past sales figures. D) A joke to lighten the tone. Answer: B Explanation: Professional signatures must identify the agent, license, and brokerage.
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D) When the agent thinks it will help a sale. Answer: B Explanation: Legal compulsion overrides confidentiality. Question 42. Which article mandates that REALTORS® must not engage in “unfair competition” by misrepresenting another’s services? A) Article 13 B) Article 14 C) Article 15 D) Article 16 Answer: C Explanation: Article 15 addresses truthful cooperation and prohibits unfair competition. Question 43. The purpose of a “post-closing follow-up” is to: A) Negotiate a higher commission. B) Ensure client satisfaction and provide needed documents. C) Encourage the client to list another property immediately. D) Review the MLS for new listings. Answer: B Explanation: Follow-up supports client service and maintains professional reputation. Question 44. Which of the following is an example of “exclusive representation” that must be respected under Article 16?
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A) A buyer works with multiple agents simultaneously. B) A seller signs an exclusive listing agreement with one brokerage. C) An agent shows a property without a written agreement. D) A buyer receives a verbal promise from an agent. Answer: B Explanation: Exclusive agreements create binding obligations that must be honored. Question 45. When a REALTOR® receives a complaint about a possible ethical violation, the first step is to: A) Ignore it. B) File a lawsuit. C) Submit a grievance to the local association. D) Report to the FBI. Answer: C Explanation: The grievance process begins with a formal submission to the association. Question 46. Which of the following best illustrates compliance with the “Equal Housing” logo usage? A) Placing the logo on all marketing materials regardless of content. B) Using the logo only on listings that comply with Fair Housing laws. C) Adding the logo to personal social media profiles. D) Removing the logo to avoid liability. Answer: B Explanation: The logo should accompany listings that meet Fair Housing standards.
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Answer: B Explanation: SOP 2-6 clarifies how agents must disclose agency relationships. Question 50. A REALTOR® who fails to respond to a client’s email within the agreed-upon 24-hour window is violating: A) Article 4. B) Article 7. C) Their own communication commitment, not a specific Code article. D) Article 15. Answer: C Explanation: Timely communication is an ethical expectation but not tied to a specific article. Question 51. Which of the following is a required component of a “Fair Housing” training program for REALTORS®? A. Learning how to price homes higher in affluent neighborhoods. B. Understanding the protected classes and prohibited practices. C. Strategies for steering clients to desirable schools. D. Techniques for increasing commission rates. Answer: B Explanation: Training must cover protected classes and illegal discriminatory conduct. Question 52. When a client asks for a “price justification” for a listing, the REALTOR® should: A. Invent reasons to meet the client’s expectations.
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B. Provide comparable sales data and market trends. C. Decline to answer. D. Reduce the price immediately. Answer: B Explanation: Using data upholds the duty of competence and honesty. Question 53. Which article requires REALTORS® to refrain from “disparaging” a competitor’s services? A. Article 13 B. Article 14 C. Article 15 D. Article 16 Answer: C Explanation: Article 15 prohibits false or misleading statements and disparagement. Question 54. An agent receives a referral fee from a title company for recommending them to a client. The correct ethical action is to: A. Keep the fee secret. B. Disclose the referral fee to the client. C. Refuse the fee and still recommend the company. D. Increase the client’s closing costs to cover the fee. Answer: B Explanation: Transparency about compensation avoids conflict of interest. Question 55. Which of the following best defines “material fact” under Article 4?
