Are you up to Code?

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The words

11/03/2015 | Author: Editorial Staff

You agreed to follow it when you became a Texas REALTOR®, but how well do you know the Code of Ethics? See how you fare by taking this quick quiz. 

  1. Which of the following are REALTORS® required to keep in special accounts separated from their own funds?
    a. Escrow money 
    b. commissions
    c. security deposits
    d. trust funds
  2. True or false? The Texas Real Estate Commission also enforces the REALTOR® Code of Ethics in Texas. 
  3. According to the Code, who of the following is required to give consent to have a for sale sign on a property?
    a. the agent 
    b. the broker 
    c. the seller 
    d. the HOA 
  4. True or false? Social media channels that limit the amount of information you can display are exempt from the requirement to disclose a REALTOR®’s firm name.
  5. True or false? An anonymous person can file an ethics complaint against you.

Answers

1. a., c., and d. Article 8 requires you to keep money you are holding in trust for others in an account separate from your own funds.
2. False. TREC has jurisdiction over Texas real estate licensing laws, but enforcement of the Code is managed by the REALTOR® organization. Ethics complaints can be filed with the Texas Association of REALTORS®. 
3. c. The Code requires you to get permission from a seller or landlord before putting a for sale, for rent, or for lease sign on a property.
4. True. If disclosing the name of the firm in an electronic display of limited information is not practical when advertising using social media, the advertisement may link to the required disclosures.
5. True. Ethics complaints can be filed against you anonymously if the complaint pertains to articles eligible for the citation program. (The citation program is limited to certain aspects of Articles 3, 4, 5, 6, 12, 14, and 16 of the Code).

Categories: Ethics
Tags: quiz, code of ethics


Comments

Chris Rosprim on 11/13/2015

Question 3 says According to the Code….. and according to the language of the Code of Ethics - only the seller is required to give permission for a REALTOR to put a sign in the yard.  It does not say if the property happens to be in an HOA…. trying to read too much into the question.

Rick DeVoss on 11/06/2015

I have a bit of a problem with the way the staff constructed this quiz.
> First of all, we were not told to select more than one multiple choice answer.  (Most people are used to picking the best answer on a multiple choice question.)
> Secondly,  if you proceed with that assumption, there is more than one correct answer on Question 3.  ~All of the listed answers could be correct.
Consider this:  What if the Listing Agent did not want to talk to buyers, so as to avoid an “intermediary situation”?  The Listing Agent could allow a Buyer’s Rep to place their sign in the yard,  ...with the permission of the Broker, the Seller, and, of course, the HOA.
And if the Code does not specifically mention HOA’s, then that should not have been part of the multiple choice options.  We all know you cannot place a sign in a yard if the HOA rules prohibit it.  It would be “unethical” to do otherwise.

Rick DeVoss on 11/06/2015

I’m not sure what you meant, Bill, ...
but it is not legal to use a sign that says only “For Sale, and your agent phone number.”  You must identify your broker or company name.

Bill Friedrich on 11/06/2015

I agree with Michael, there are HOA’s that only allow signs according to their specifications regarding sign & lettering dimensions, color of sign & lettering and “No Branding”.  Only For Sale or For Rent and the Agent’s phone number.

Laurel "Gerry" Hackley on 11/05/2015

I read thru all the material.

Rob Moren on 11/05/2015

HOA and owner have an agreement.  Owner gives OK, since he/she is owner.  If this conflicts w HOA agreement, that is for owner to resolve.  Let’s point HOA’s possible interest in this out to owner, and let owner take care of it.  This situation may apply to only 10% of properties sold, especially the supposed adversarial HOA.  Let’s not try amend the code for every different situation, instead let’s manage the process as agent/brokers.  Coordination with owner on HOA role can easily solve this potential problem.

Michael Voulgaris on 11/05/2015

While it is true that the seller must give permission to place a for sale sign on the property, some HOA’s forbid signs on the property.  Therefore, in some cases, the HOA has the final say,  even if the code says the seller.  Maybe, the code needs to be altered.


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The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on texasrealestate.com. Any legal or other information found here, on texasrealestate.com, or at other sites to which we link, should be verified before it is relied upon.

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