Reference no: EM13746822

Case Study

(The total Summary should be a minimum of 3 pages long and maximum of 5 pages.)

Part 1 -Ethics

The Code of Ethics (NAR)

#1. The 2012 Code of Ethics is linked this link. You may wish to print it out.

Explain the meaning of the Introduction and Preamble.

#2. Canons of Ethics

Write a paragraph summarizing the Canons of Ethics.

Part 2 - Deceptive Trade Practices Act (DTPA)

Read the article from the Real Estate Center that is linked below this Case Study link.

Write a summary giving 3 examples of common violations of the DTPA by real estate professionals.

Part 3- Write out the steps given in the textbook about how to ‘handle objections'. (Practice these until they become natural. Success in sales will follow!) Remember when to be quiet and LISTEN ! Write out a possible scenario using those steps to the following scenarios:

#1. Buyer says, "I love the house, but I could never live with that purple carpet!"

#2. In another situation the buyer says "Hmmmm.........I'm just not sure. This is not the ‘one'."

Part 4 - Closing techniques (Write out your solutions to the following situations.)

#1. A serious, first-time buyer cannot decide between 2 homes. What would you do?

#2. Explain what is meant by an "assumptive close".

The 5 Canons of Professional Ethics and Conduct

Title 22 of the Texas Administrative Code (TAC) Chapter 531 includes five canons of professional ethics and

conduct. The canons apply to real estate licensees and are included in the rules of the Texas Real Estate

Commission (TREC). Acting as a fiduciary, the real estate licensee must exercise a standard of duty and care when

representing a client in a real estate transaction. The licensee must subordinate his or her own interest to the

client's interest. The canons also support the Federal Fair Housing Act in forbid- ding discrimination in real estate

activities. These canons are similar in content to general business ethics and common law agency principles from a

variety of sources including case law, statutory law and codes of ethics of many professional and trade

associations.

The Five Canons

1. Fidelity (22 TAC §531.1)

A licensee represents the interest of the agent's client. The agent, in performing duties to the client, must

• make his or her position clear to all parties concerned in a real estate transaction,

• treat other parties to a transaction fairly,

• be faithful and observant to the trust placed in the agent,

• perform his or her duties scrupulously and meticulously, and

• place no personal interest above the client's interest.

2. Integrity (22 TAC §531.2)

A licensee

• has a special obligation to perform his or her responsibilities, and

• must use caution to avoid misrepresentation by acts of commission or omission.

Chapter 1

3. Competence (22 TAC §531.3)

A licensee

• is knowledgeable as a real estate practitioner,

• is informed on market conditions that affect the real estate business,

• continues his or her education in the intricacies involved in marketing real estate for others,

• stays informed about national, state and local issues and developments in the real estate industry, and

• exercises judgment and skill in the performance of his or her work.

A licensee might ask the following:

• What are my strengths and deficiencies?

• Do I attend classes to improve my services to my clients or customers? How often?

• What resources are available to help me maintain my competence?

• Do I keep abreast of market conditions in the area in which I practice? How?

• Am I aware of trends in real estate prac- tices? How do I usually find out about these trends?

• Do I read Real Estate Commission and trade publications? Which ones? How do they

      help me maintain my competence?

• Can I identify local, state and national issues that are currently under development or consideration?

4. Consumer Information Form 1-1 (22 TAC§531.18)

Each active real estate broker or real estate inspector licensed by the Texas Real Estate Commission (TREC) must  display Consumer Information Form 1-1 prominently in each place of business that the broker or inspector maintains.

5. Discriminatory Practices (22 TAC §531.19)

No real estate licensee shall inquire about, respond to or facilitate inquiries about or make a disclosure, which indicates or is intended to indicate any preference, limitation or discrimination based on protected classes.

Protected classes include race, color, religion, sex, national origin, ancestry, and familial status. Protected classes also include handicap of an owner, previous or current occupant, potential purchaser, les- sor or potential lessee of real property. A handicapped individual includes a person who had, may have had, has or may have AIDS, HIV-related illnesses or HIV infection as defined by the Centers for Disease Control of the U.S. Public Health Service.