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Realtor A suggests to a new home purchaser that the purchaser buy his appliances from the ABC appliance corporation in which the Realtor is a part owner. Which of the following is most correct with respect to the Realtor code of ethics?

Option 1: The realtor is not violating any code of ethics
Option 2: The realtor is not violating any code of ethics if the purchaser consents
Option 3: The realtor is violating the code of ethics
Option 4: The realtor is violating the code of ethics if the purchaser does not consent

User BAR
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1 Answer

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Final answer:

The Realtor A is violating the Realtor Code of Ethics by suggesting a home purchaser buys appliances from ABC appliance corporation without disclosing the personal interest. Full transparency of the realtor's part ownership is required for the behavior to be ethical.

Step-by-step explanation:

The question asks which of the following is most correct concerning the realtor's suggestion that a home purchaser should buy appliances from a corporation in which the realtor is part owner. According to the Realtor Code of Ethics, there are strict rules regarding disclosure of personal interests and potential conflicts of interest. The most accurate answer is:



Option 3: The realtor is violating the code of ethics



In the realm of real estate, the Realtor Code of Ethics typically requires that agents fully disclose any personal interest or benefit they may gain from a recommendation they make to their clients. This disclosure must be transparent and made before the client makes any decision based on the realtor's recommendation. If the Realtor A has not made such a disclosure, they would indeed be violating the code of ethics. However, if they fully disclose this interest and the purchaser consents to it, the behavior may be deemed ethical under certain circumstances. Thus, consent from the purchaser while informed of the realtor's part ownership is a critical factor for the ethic's code adherence.

User Linda Leang
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