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Real Estate Ethics and Professional Conduct
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Flashcards
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Compliance with Laws
Adhering strictly to all relevant state and federal laws, as well as local regulations governing real estate transactions. This includes licensing laws and property disclosures.
Confidentiality
An ethical obligation to protect the private information of clients. Real estate professionals should not disclose information provided by their clients without consent.
Avoiding Conflicts of Interest
Agents must avoid situations where personal interests could conflict with their professional duties. Loyalty to the client's interests should take precedence.
Loyalty
The duty to place the interest of the client above all others, including the agent's own interests. Fostering trust and prioritizing the client’s needs are key.
Integrity
Real estate professionals are expected to conduct business with honesty and fairness. Integrity also implies adherence to ethical codes and laws.
Competency
Professionals must have the necessary knowledge and skills to perform tasks effectively. Continuous education is often required to maintain competency in real estate.
Advocacy
Agents are expected to act as advocates for their clients, representing their interests during negotiations and throughout the entire real estate process.
Respect for Peers
Professionals should treat other real estate agents and industry members with courtesy and respect. This promotes a professional and ethical working environment.
Accounting of Funds
Agents are required to keep accurate records of all financial transactions and funds held on behalf of clients. This includes escrow and trust accounts.
Disclosure of Material Facts
The requirement to inform parties involved in a transaction of all relevant information. Real estate professionals must disclose facts that could affect a property's value or desirability.
Fiduciary Duty
A legal obligation of one party to act in the best interest of another. In real estate, agents have a duty to act in the best interests of their clients.
Obedience
An agent's duty to follow the lawful instructions of their clients. It does not extend to actions that are illegal or unethical.
Due Diligence
The process of thoroughly investigating a property before transaction. It is an agent's duty to ensure due diligence is performed to protect the client's interests.
Equal Opportunity and Fair Housing
The commitment to providing housing opportunities without discrimination based on race, color, religion, sex, handicap, familial status, or national origin.
Transparency
The practice of being open and honest about all aspects of a transaction, including potential issues or conflicts. Transparency is vital in maintaining trust.
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