California Real Estate Salesperson Exam Practice - Question 72

Question

The term "Realtor" is a trade name and only persons who are members of which organization have the right to use it?

Selections

A. American Institute of Real Estate Brokers

B. State Real Estate Commission

C. National Association of Realtors

D. National Association of Real Estate Boards

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Answer: C

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5 Keys Summary

• The term "Realtor," along with "REALTORS®" and "REALTOR-ASSOCIATE®," is a registered trademark and collective membership mark owned by the National Association of Realtors (NAR).

• The right to use the designation "Realtor" is granted exclusively through membership in the National Association of Realtors (NAR).

• Only licensees who are active members of the NAR are authorized to refer to themselves as a "Realtor".

• Use of the "Realtor" trade name by a licensee who is not an NAR member constitutes misuse and is a violation of the California Real Estate Law.

• Members of the National Association of Realtors commit to adhering to the N.A.R. Code of Ethics, conferring a designation that implies competence and high integrity.

Explanations

The term "Realtor" is a registered trade name and a trademark. It can only be used by real estate professionals who are active members of the National Association of Realtors (NAR). This organization promotes professionalism in the real estate business, and its members adhere to a specific code of ethics. Using the term "Realtor" without being a member of NAR, and paying the associated membership fees, is considered a misuse of the trade name and is a violation. If an agent is not a NAR member, they should refer to themselves as a real estate agent or broker, not a "Realtor"

Concepts Definitions

Realtor: A real estate professional who is a member of the National Association of Realtors (NAR) and adheres to its code of ethics. It is a protected trade name.

National Association of Realtors (NAR): A professional organization that promotes professionalism within the real estate industry and whose members are authorized to use the "Realtor" trade name.

Trade Name: A name used by a company or organization to identify its business, products, or services. In this context, "Realtor" is a trademarked trade name exclusive to NAR members.