RCE Module 2 Real Estate Exam Questions & Answers 2026 (21–30)

Question 1

An association executive is revising the association's bylaws. According to NAR policy, which of the following must be included?

TheoryPractice · Accepted Answer

Mandatory provisions requiring members to adhere to the Code of Ethics. NAR requires all member associations to include mandatory provisions in their bylaws, including the requirement to adhere to the Code of Ethics. These mandatory provisions ensure consistency across the organization.

Question 2

When developing a policy manual for a local REALTOR® association, which approach best helps the association meet core standards requirements?

TheoryPractice · Accepted Answer

Reviewing NAR model policies and adapting them to local needs. Reviewing NAR model policies ensures the local association's policies align with NAR requirements, helping to meet core standards compliance while maintaining local flexibility.

Question 3

During a board of directors meeting, several members begin discussing setting a 'standard' commission rate for the area. What should the association executive do immediately?

TheoryPractice · Accepted Answer

Interrupt the discussion and advise that this topic could violate antitrust laws. Discussions about standardizing commission rates can violate antitrust laws. The AE must intervene immediately to stop such discussions and remind members that this type of discussion could create legal liability.

Question 4

Which NAR core standards requirement relates directly to association governance?

TheoryPractice · Accepted Answer

Having an actively enforced Code of Ethics. NAR core standards require associations to have an actively enforced Code of Ethics as part of their governance structure, ensuring ethical standards are maintained.

Question 5

An association is updating its bylaws. What is the correct process for implementing these changes?

TheoryPractice · Accepted Answer

Approval by board of directors, then membership, then submission to NAR for review. Bylaw changes require approval by the association's board of directors, followed by the membership, and then must be submitted to NAR for review to ensure compliance with NAR policy.

Question 6

Which of the following would most likely create antitrust concerns at a REALTOR® association meeting?

TheoryPractice · Accepted Answer

Discussion about what fees members should charge consumers. Discussions about fees charged to consumers can be interpreted as price-fixing, which violates antitrust laws. Association executives must prevent such discussions.

Question 7

According to NAR policy, how often must local associations certify their compliance with core standards?

TheoryPractice · Accepted Answer

Annually. NAR requires annual certification of core standards compliance to ensure associations consistently maintain the required standards of service and operation.

Question 8

What is the primary purpose of NAR's core standards for REALTOR® associations?

TheoryPractice · Accepted Answer

To ensure consistent service and value across all REALTOR® associations. The primary purpose of core standards is to ensure consistency in service and value across all REALTOR® associations, maintaining the strength and relevance of the organization.

Question 9

Which of the following must be included in a local REALTOR® association's bylaws?

TheoryPractice · Accepted Answer

A provision stating that the board of directors is the governing body. NAR requires that local association bylaws include a provision stating that the association's board of directors will be the governing body, establishing clear governance structure.

Question 10

When is a local association considered in compliance with NAR's core standards for advocacy?

TheoryPractice · Accepted Answer

When it demonstrates advocacy engagement through RPAC participation or other initiatives. Core standards require associations to demonstrate advocacy engagement through activities such as RPAC participation, calls for action, or other advocacy initiatives supporting the industry.

RCE Module 2 Real Estate Exam Questions & Answers 2026 (21–30)

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