Question

Which of these licensees is likely in violation of Article 17 of the NAR Code of Ethics?

a) Lisa, who provided accurate information about a property's condition to a potential buyer
b) Mark, who disclosed a property's flaws to a seller's agent
c) Sarah, who intentionally failed to disclose material facts about a property to the buyer
d) John, who ensured transparency in all his transactions

Answer 1

Sarah is likely in violation of Article 17 of the NAR Code of Ethics by intentionally failing to disclose material facts about a property to the buyer. The other licensees named in the scenario are acting ethically by being transparent and honest in their dealings.

Step-by-step explanation:

The question relates to Article 17 of the National Association of Realtors (NAR) Code of Ethics, which emphasizes the importance of honesty and disclosure in real estate transactions. In this context, the licensee likely to be in violation of Article 17 is Sarah, who intentionally failed to disclose material facts about a property to the buyer. According to NAR's Code of Ethics, a real estate professional is obligated to present all material information truthfully to all parties involved in a transaction.

Lisa, Mark, and John acted ethically by providing accurate information, disclosing property flaws, and ensuring transparency, respectively. In contrast, Sarah's action of withholding material facts is a direct violation of the ethical duty to treat all parties fairly and honestly, which is the core principle of Article 17.