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NumberofunitsSalespriceperunitVariablecostsperunitTotalfixedcostsTargerprofitCalculate:ContributionmarginperunitContributionmarginratioRequiredunitstoachievetargerprofitRequiredunitstobreakeveRequiredsalesdollarstobreakevenA870units$1,00060079,200268,000B25,000units$1006080,000920,000C2,800units$1608064,000160,000. Article 2 requires Realtors to ___. These disclosures include things that would influence sale value, negotiations, and moving forward. These cookies do not store any personal information. misrepresenting the availability of access to show or inspect a listed property. 62, 66, 550 P.2d 1104 (1976). realtors must discover and disclose - solanoverdewater.com (Amended 1/12), REALTORS, when acting solely as principals in a real estate transaction, are not obligated to arbitrate disputes with other REALTORS absent a specific written agreement to the contrary. Additional Facts That Must Be Disclosed to an Agent's PRINCIPAL Under agency law, an agent must disclose to the principal any information that may affect the principal's rights and interests or influence the principal's decision in the transaction. Alquist-Priolo Earthquake Fault Zones - California Department Of In either instance the decision of the hearing panel as to procuring cause shall be conclusive with respect to all current or subsequent claims of the parties for compensation arising out of the underlying cooperative transaction. A. (Adopted 1/95). REALTORS shall not knowingly provide substantive services concerning a prospective transaction to prospects who are parties to exclusive representation agreements, except with the consent of the prospects exclusive representatives or at the direction of prospects. PDF NATIONAL ASSOCIATION OF REALTORS Code of Ethics Video Series From These material facts are sometimes referred to as latent defects. As a real estate licensee, this should be your approach as well. In such cases the complainant may name the first cooperating broker as respondent and arbitration may proceed without the listing broker being named as a respondent. 0 The duties the Code of Ethics imposes are applicable whether REALTORS are acting as agents or in legally recognized non-agency capacities except that any duty imposed exclusively on agents by law or regulation shall not be imposed by this Code of Ethics on REALTORS acting in non-agency capacities. Modifications to existing Standards of Practice and additional new Standards of Practice are approved from time to time. In either instance the decision of the hearing panel as to procuring cause shall be conclusive with respect to all current or subsequent claims of the parties for compensation arising out of the underlying cooperative transaction. (Amended 1/93), Only REALTORS who participated in the transaction as the listing broker or cooperating broker (selling broker) may claim to have sold the property. Although Realtors must follow their buyer's lawful instructions if a buyer chooses to move forward with such a transaction, you can help them understand, long before making the offer, the potential risks. In recognition and appreciation of their obligations to clients, customers, the public, and each other, REALTORS continuously strive to become and remain informed on issues affecting real estate and, as knowledgeable professionals, they willingly share the fruit of their experience and study with others. The sellers agent should discuss the defects with their client to determine if they are still interested or want to negotiate. In California, for example, any death on a property (peaceful or otherwise) needs to be disclosed if . 1. Disclosure Requirements for Selling Ohio Real Estate (Amended 1/12), REALTORS shall not knowingly or recklessly file false or unfounded ethics complaints. REALTORS shall not deny equal professional services to any person for reasons of race, color, religion, sex, disability, familial status, national origin, sexual orientation, or gender identity. L|*c V . Any persons engaged to provide such assistance shall be so identified to the client and their contribution to the assignment should be set forth. If the cooperating broker is a buyer/tenant representative, the buyer/tenant representative must disclose such information to their client before the client makes an offer to purchase or lease. Under all is the land. REALTORS shall ensure that their status as real estate professionals is readily apparent in their advertising, marketing, and other representations, and that the recipients of all real estate communications are, or have been, notified that those communications are from a real estate professional. When The Keys Feel Like They Don't Work. Click here. For example, a seller has a duty to disclose material facts to the buyer, which are not known by the buyer, if the material fact would affect the value of the property. Then The Door Pops Open. (Adopted 11/86, Amended 1/16), REALTORS, when advertising unlisted real property for sale/lease in which they have an ownership interest, shall disclose their status as both owners/landlords and as REALTORS or real estate licensees. REALTORS shall not be parties to any plan or agreement to discriminate against a person or persons on the basis of race, color, religion, sex, disability, familial status, national origin, sexual orientation, or gender identity. If this is the case, real estate professionals should provide their seller clients with standard property disclosure statement forms to fill out and transmit to buyers. b. adverse factors reasonably apparent to someone with expertise in those areas required by their real estate licensing authority. (Amended 1/98), REALTORS, prior to entering into a representation agreement, have an affirmative obligation to make reasonable efforts to determine whether the prospect is subject to a current, valid exclusive agreement to provide the same type of real estate service. When serving a buyer, seller, landlord, tenant or other party in a non-agency capacity, REALTORS remain obligated to treat all parties honestly. (Adopted 11/87, Amended 1/99), REALTORS shall not intentionally impede the Boards investigative or disciplinary proceedings by filing multiple ethics complaints based on the same event or transaction. (Adopted 1/97), 4) Where two or more listing brokers claim entitlement to compensation pursuant to open listings with a seller or landlord who agrees to participate in arbitration (or who requests arbitration) and who agrees to be bound by the decision. You also have the option to opt-out of these cookies. In instances where their opinion is sought, or where REALTORS believe that comment is necessary, their opinion is offered in an objective, professional manner, uninfluenced by any personal motivation or potential advantage or gain. A Realtor has an obligation to ___. If you or someone you know has questions regarding disclosure issues or any other real estate matter, please call or email today. (Adopted 1/95, Amended 1/00), REALTORS who are employed to maintain or manage a clients property shall exercise due diligence and make reasonable efforts to protect it against reasonably foreseeable contingencies and losses. Ty is a native of Lake of the Ozarks, Missouri, and currently resides in Kansas City. The Code of Ethics requires listing agents toadvise sellers of the amount of compensation and the amount. While many disclosure requirements are set by statute (e.g., Notice of Soil Remediation, A.R.S. Discipline in an ethics hearing may include: Compute the contribution margin per unit and the number of tickets Playtime Park must sell to break even. realtors must discover and disclose. While the Code of Ethics establishes obligations that may be higher than those mandated by law, in any instance where the Code of Ethics and the law conflict, the obligations of the law must take precedence. Did (Amended 1/08), REALTORS must not represent that their brokerage services to a client or customer are free or available at no cost to their clients, unless the REALTOR will receive no financial compensation from any source for those services. \text{Contribution margin per unit}\\ (Amended 1/04), Article 16 does not preclude REALTORS from contacting the client of another broker for the purpose of offering to provide, or entering into a contract to provide, a different type of real estate service unrelated to the type of service currently being provided (e.g., property management as opposed to brokerage) or from offering the same type of service for property not subject to other brokers exclusive agreements. Readers are cautioned to ensure that the most recent publications are utilized. Alternatively, if the complaint is brought against the listing broker, the listing broker may name the first cooperating broker as a third-party respondent. (Adopted 1/93, Amended 1/22). Necessary cookies are absolutely essential for the website to function properly. (Adopted 1/98, Amended 1/10). The term REALTOR has come to connote competency, fairness, and high integrity resulting from adherence to a lofty ideal of moral conduct in business relations. Alternatively, if the complaint is brought against the listing broker, the listing broker may name the first cooperating broker as a third-party respondent. Conversely, a buyer has a duty to disclose facts critical to their ability to perform (i.e., timely close the transaction). Realtors must submit offers ___. Upon the written request of the listing broker who submits a counter-offer to the buyers tenants broker, the buyers/tenants broker shall provide, as soon as practical, a written affirmation to the listing broker stating that the counter-offer has been submitted to the buyers/tenants, or a written notification that the buyers/tenants have waived the obligation to have the counter-offer presented. (Adopted 2/86). Regarding commissions, the listing broker has a duty to disclose. REALTORS shall only be obligated to discover and disclose adverse factors reasonably apparent to someone with expertise in those areas required by their real estate licensing authority. If brokerage or transaction services are to be provided in addition to consultive services, a separate compensation may be paid with prior agreement between the client and REALTOR. Non-Profits, Religious Organizations, and Political Activity: What is Permissible? Among the duties owed is the "duty of disclosure." (Adopted 11/88), REALTORS shall not knowingly or recklessly make false or misleading statements about other real estate professionals, their businesses, or their business practices. & REALTOR Code of Ethics Flashcards | Chegg.com \textbf{Calculate:}\\ (Adopted 1/97, Amended 1/07), 2)Where a buyer or tenant representative is compensated by the seller or landlord, and not by the listing broker, and the listing broker, as a result, reduces the commission owed by the seller or landlord and, subsequent to such actions, another cooperating broker claims to be the procuring cause of sale or lease. \text{Total fixed costs}&\text{79,200}&\text{80,000}&\text{64,000}\\ Upon the written request of a cooperating broker who submits an offer to the listing broker, the listing broker shall provide, as soon as practical, a written affirmation to the cooperating broker stating that the offer has been submitted to the seller/landlord, or a written notification that the seller/landlord has waived the obligation to have the offer presented.