Understanding Violations of the Code of Ethics in Real Estate

Explanation:

REALTORS could be found in violation of the Code of Ethics and being charged with fraud if they engage in activities such as misrepresent property information, fail to disclose material facts, or engage in discriminatory practices. This encompasses failing to provide accurate information about properties, omitting details that would impact a buyer or seller's decision, and discriminating against individuals based on ethnicity, which directly ties into fair housing laws and ethical standards set forth in the real estate industry.

Discriminatory practices have a historical context as well, with the U.S. Supreme Court declaring restrictive covenants unconstitutional in 1948. However, practices such as mortgage discrimination persisted in different forms, making it more difficult for ethnic minority groups to purchase homes in certain areas. Discrimination in the housing market can affect community diversity and access to opportunities, including those related to employment, as quality schools and beneficial networks are often located in communities that steer away ethnic minorities through subtle discriminatory practices.