Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

What serves as a basis for ethical standards for REALTORS®?

1. State laws

2. Personal morals

3. The Code of Ethics

4. Industry regulations

The correct answer is: The Code of Ethics

The Code of Ethics serves as the foundational framework for ethical standards for REALTORS®. Developed by the National Association of REALTORS® (NAR), the Code articulates the professional expectations and conduct required of members, guiding their actions in various real estate transactions and interactions with clients, colleagues, and the public. It encompasses principles like honesty, integrity, and fairness, ensuring that REALTORS® maintain professionalism and uphold the trust placed in them by their clients and the community. While state laws, personal morals, and industry regulations can influence behaviors and practices within the real estate profession, they do not provide the same comprehensive and specific ethical guidelines tailored for REALTORS® as the Code of Ethics does. State laws may define legality, while personal morals are subjective and can differ widely among individuals. Industry regulations often govern operational procedures but may not cover the ethical nuances that the Code of Ethics directly addresses. Therefore, the Code stands out as the definitive source for ethical standards in this profession.