DEXTER J.

BANGOY
AKADEMEO-LOA
BSREM

Reviewer Exam: National Code of Ethics of Real Estate Service of the Philippines

Instructions: Select the best answer for each question.

1. What is the purpose of the National Code of Ethics of Real Estate Service in the
Philippines?
a) To promote fair competition among real estate professionals
b) To ensure compliance with taxation laws in real estate transactions
c) To establish ethical standards for real estate service providers
d) To regulate property prices and rental rates

2. Which fundamental principle is emphasized in the Code of Ethics?

a) Accountability
b) Efficiency
c) Competitiveness
d) Integrity

3. What does the principle of integrity entail in the real estate service industry?
a) Providing accurate and timely information to clients
b) Offering discounts to potential buyers or tenants
c) Pursuing continuous professional development
d) Ensuring confidentiality of client information

4. What is one of the duties and responsibilities of a real estate professional towards
clients?
a) Acting in the best interest of clients
b) Promoting personal interests over client interests
c) Concealing property defects from clients
d) Misrepresenting property information to clients

5. Which act is considered a prohibited act or misconduct under the Code of Ethics?
a) Maintaining client confidentiality
b) Engaging in fair negotiations with other agents
c) Discriminating against clients based on their nationality
d) Disclosing accurate property information to clients

6. How can real estate professionals resolve disputes related to ethical violations?
a) Seek legal action against the violating party
b) Report the violation to the regulatory bodies
c) Engage in public shaming of the violating party
d) Ignore the violation and continue with business transactions

7. What are the potential consequences of violating the Code of Ethics?

a) Mandatory ethics training
 b) Monetary fines or penalties
c) Suspension or revocation of real estate license
d) No consequences, as the Code is merely advisory

8. How can real estate professionals demonstrate professionalism towards

colleagues?
a) Avoiding conflicts of interest
b) Disclosing confidential client information
c) Discriminating against colleagues based on their background
d) Falsifying property information to gain an advantage

9. Who is responsible for enforcing the National Code of Ethics?

a) Real estate professionals themselves
b) The Department of Trade and Industry
c) Local government units
d) Regulatory bodies in the real estate industry

10. Why is it important for real estate professionals to adhere to the Code of Ethics?
a) To avoid legal penalties and fines
b) To maintain a positive reputation in the industry
c) To protect the interests of clients and the public
d) All the above

11. What is the purpose of the National Code of Ethics of Real Estate Service in the
Philippines?
a) To promote fair competition among real estate professionals.
b) To ensure the protection of client interests and public welfare.
c) To establish guidelines for marketing and advertising properties.
d) To regulate the fees and commissions charged by real estate agents.

12. Which fundamental principle of the National Code of Ethics emphasizes honesty
and fairness in all dealings?
a) Integrity
b) Competence
c) Professionalism
d) Loyalty

13. What is the duty of a real estate professional towards their clients, as outlined in the
Code of Ethics?
a) Duty of loyalty and acting in the best interest of clients.
b) Duty to protect the public interest.
c) Duty to provide accurate and timely information.
d) Duty to maintain confidentiality and privacy.

14. Which act is considered a violation of the National Code of Ethics in the real estate
service industry?
a) Providing accurate and honest information to clients.
 b) Engaging in fraudulent practices or unethical behavior.
c) Avoiding conflicts of interest with colleagues.
d) Continuously updating knowledge and skills.

15. What is the potential consequence of violating the National Code of Ethics?
a) Mandatory professional training and development.
b) Public recognition for adherence to ethical conduct.
c) Suspension or revocation of real estate license.
d) Monetary compensation for affected clients.

16. What is the process for reporting a violation of the Code of Ethics?
a) Directly confronting the violator and resolving the issue.
b) Filing a complaint with the regulatory body overseeing real estate service.
c) Engaging in mediation and arbitration to reach a resolution.
d) Seeking legal action through the court system.

17. Which principle of the Code of Ethics emphasizes the duty to avoid discrimination
based on protected categories?
a) Integrity
b) Competence
c) Professionalism
d) Loyalty

18. How does the Code of Ethics promote professionalism in the real estate service
industry?
a) By encouraging continuous professional development.
b) By setting maximum commission rates for real estate transactions.
c) By limiting the number of real estate agents in the market.
d) By providing standardized contracts for all transactions.

19. What is the role of regulatory bodies in enforcing the National Code of Ethics?
a) Providing legal advice and representation to real estate professionals.
b) Conducting investigations into reported violations of the Code.
c) Negotiating contracts and agreements on behalf of real estate agents.
d) Assisting clients in filing complaints against real estate professionals.

20. Why is it important for real estate professionals to adhere to the Code of Ethics?
a) To maintain a positive reputation and gain client trust.
b) To increase commission rates and maximize profits.
c) To avoid legal consequences and fines.
d) To promote healthy competition within the industry.

Section II: True or False

21. True or False: Real estate practitioners are not required to update their knowledge
and skills regularly once they obtain their license.

22. True or False: It is acceptable to discriminate against potential clients based on their
religious beliefs.

23. True or False: The Duty of Loyalty to clients may be set aside if a real estate agent
can benefit more from another transaction.

24. True or False: Real estate professionals are not obligated to disclose their agency
relationship with a client.

25. True or False: The Code of Ethics only applies to licensed real estate agents and
not to unlicensed assistants.

Answer Key:

1. c
2. d
3. a
4. a
5. c
6. b
7. c
8. a
9. d
10. d
11. B
12. A
13. A
14. B
15. C
16. B
17. C
18. A
19. B
20. A
21. False
22. False
23. False
24. False
25. False
 CODE OF ETHICS

Article I - Covers all acts of CAABS: RE Consultants, RE Appraisers, RE

Assessors, RE Brokers, RE Salespersons

Article II - Provisions and Declaration of Principles - CECUP

1. RESP shall uphold the Constitution and all the laws of the Republic of
the Philippines.

2. RESP shall Exercise the profession with utmost Integrity, Fidelity,

Responsibility, Sincerity, Respect and Courtesy. (InFiReSiReCo)

3. RESP shall Comply with the Policies, Rules and Regulations

promulgated by the Board and the Commission.

4. RESP shall Uphold the generally accepted local and international

technical and ethical standard related to the practice of the profession.

5. RESP shall Promote the values of camaraderie, unity, solidarity and

synergy in hi professional relationship.

Article III - Rules of Ethics and Responsibilities

Sec 1. To the Govt (set, secure, pay)

a. RESP shall always set a good example as a responsible law-abiding

citizen.

b. RESP shall secure all necessary licenses, permits and authority as

may be required by law, ordinance or rules and regulations.

c. RESP shall pay correct taxes and fees required by law. They shall not
encourage, tolerate, participate, directly or indirectly, in the evasion or
illegal reduction of any payment that is due to the government.

Sec 2. To the General Public (contribute, cooperate, enhance,

participate)

a. RESP shall contribute to the promotion of the common good by

engaging in social responsibility activities and initiatives.

b. RESP shall cooperate with the government and the AIPO in protecting
the public against fraud, misrepresentation, and unethical practices of
 licensed, unlicensed and unauthorized individuals or parties that
adversely affect the integrity of the profession.

c. RESP shall enhance his competency, proficiency and expertise in the

practice by keeping abreast of the latest trends and developments in
the field of real estate service through the involvement in CPD
activities.

d. RESP shall participate in the proactive development of real estate

service by imparting knowledge, technical training, experiences,
studies or research, except those that are deemed classified or
confidential which may only be disclosed upon the consent of the
parties concerned or lawful order of competent authorities.

Sec 3. To the client (honest, good faith, confidentiality, disclose, not

accept, transparency)

a. RESP shall be honest and trustworthy and shall observe impartiality,

fairness and loyalty in his practice.

b. RESP shall exercise good faith in protecting and promoting the

interest of the client in relation to that of the other parties concerned.

c. RESP shall strictly observe client-practitioner confidentiality.

d. RESP shall fully and truthfully disclose all pertinent material facts
involved in the engagement.

e. RESP shall charge or collect professional fee which is fair and

reasonable in accordance with real estate industry practice.

f. RESP shall not accept PFs or valuable consideration from other

parties unless with full disclosure and permission from the client.

g. RESP shall always maintain transparency in all dealings with client.

Sec 4. To fellow practitioners (fair, respect, use with consent)

a. RESP shall act with fairness, justice and good faith in the exercise of
his rights and performance of his duties.

b. RESP shall respect the dignity, honor, good reputation and privacy of
fellow practitioners.
 c. RESP shall use or furnish transactional documents only with the written
consent of the practitioner where the documents originated.

Sec 5. To the AIPO (actively participate, abide)

a. RESP shall support the AIPO by actively participating in its programsand

activities.

b. RESP shall abide by the procedures on mediation, conciliation and

arbitration of grievances and disputes.

Article IV - Duties and Responsibilities

Sec 1. RESP shall live up to the tenets enshrined in the Oath of

Professional which he has sworn to abide by in the practice of the
profession.

Sec 2. RESP shall provide his services in a competent, dedicated andethical

manner compatible with the independence and integrity of the profession.

Sec 3. RESP shall faithfully comply with this Code of Ethics and
Responsibilities as well as with the separate Codes that will hereinafter beissued
for each of the real estate service disciplines.

Sec 4. RESP shall honor and abide by his commitments with otherparties.
Such agreement must be in consonance with the laws, public order, public
policy, morals, good custom and this Code.

Article V - Final Provision

Subject to due process, violation of the Code of Ethics and Responsibilities

shall give rise to the imposition of sanctions such asreprimand, suspension
or revocation of license and other penalties pursuant to Sec 19, Art II and Sec
39 Art V of RA 9646.

Article VI - Effectivity – August 14, 2019