Real Estate Basis of Ethical Behaviour by udt10727


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									 Code of Ethics of the National Association of Real Estate Offices
                            of Slovakia
                                              The Code of Ethics includes the provisions
              PREAMBLE                        requiring that the persons, members of
                                              NARKS engaged in real estate trade were
        Fundamental Provisions                informed about the matters relating to the
                                              real estate within their company, state and
                Article 1                     nation and that they can actively contribute
                                              to the formation of public opinion and lead
The Code of Ethics represents the             the debate about these issues. They should
commitment to competency, responsibility      be instructed to be informed about laws,
and professionalism of the members of the     proposed       legislative      amendments,
National Association of Real Estate           government resolutions, public policy and
Offices      of   Slovakia     (hereinafter   about standard market conditions so that
“NARKS”) with respect to clients and all      they can provide their clients with full and
entities active on the real estate market,    accurate advice (a client is a business party
and also provides for the mutual relations    with which a real estate agency has a
between NARKS members.                        contractual relationship) within their
                                              authority. The Code of Ethics also requires
                Article 2                     that these persons (brokers, real estate
                                              agency owners) always act in a qualified
The Code of Ethics is not only binding on     manner, honestly, in accordance with good
persons. It is also binding on the            manners, Constitution of NARKS and
organisation, to prevent unprofessional       applicable legal regulations of the Slovak
action of a NARKS member who by               Republic.
his/her unprofessional approach would
spoil the professional and qualified image    2. Obligation to be honest
of each other member of NARKS and
NARKS as a whole.                             The Code of Ethics prohibits fraud, abuse
                                              of the representation and illegal trade. A
                Article 3                     person engaged in real estate trade must
                                              undertake not to exaggerate, or on the
The acceptance of the Code of Ethics and      contrary conceal important facts and that
compliance therewith is one of the            the person will point out any existing or
conditions of the membership of NARKS.        possible conflict of interests with respect to
Only such acceptance represents the basis     assets or represented parties.
for cooperation, education, recognition and
efficiency of NARKS. The acceptance of        3. Obligation to keep accounts
the Code of Ethics should meet the
following five principles.                    The Code of Ethics requires that the
                                              persons – real estate agencies keep
              CHAPTER I                       separate account if they take for
                                              safekeeping financial resources of third
    Principles of the Code of Ethics          parties (purchase price or its part).

1. Obligation to be educated and              4. Obligation to prevent dispute with
   informed                                      other real estate brokers
 Code of Ethics of the National Association of Real Estate Offices
                            of Slovakia
The Code of Ethics requires that                 1. It is accepted by persons engaged in the
colleagues – real estate traders avoid              real estate trade who strive to establish
mutual disputes with each other. These              themselves as professionals and those
disputes could obstruct the profession and          who are prepared to accept certain
could have a bad influence on the services          assignments          and       collective
provided to their clients. In this respect the      responsibility and guaranteed liabilities
Code of Ethics requires the contracts               implied        and       imposed       by
entered into with the clients to be to the          professionalism.
maximum possible extent contracts for            2. It provides the basic ethical behaviour
exclusive       representation      (exclusive      guide in real estate trade.
contracts). Where a person – real estate         3. It provides a positive orientation of the
agency cooperates with another person –             development         of      work      and
real estate agency, the Code of Ethics              administrative activities of NARKS,
supports such cooperation with the aim of           which is accepted by NARKS as the set
a fast client service. In the event of a            of activities stipulated in the
dispute that cannot be prevented, the Code          Constitution and its objective is to
of Ethics requires that the substance of the        perform them.
dispute be presented to the Supervisory          4. It defines the obligations and liabilities
board of NARKS (as arbitration) before it           beyond the force of law.
is filed with the competent court.
                                                               CHAPTER III
5. Obligation to submit to the discipline
   of NARKS                                                      Principles

The Code of Ethics requires that in the                           Article 1
event of any dispute between NARKS
members, such dispute be primarily settled            Good Reputation – Profession
by the Supervisory Board of NARKS. In
such an event, the parties shall be obliged      1. In the performance of its profession, a
to provide the Supervisory board with all           broker cannot accept any commission
the required materials and facts and                that would be in conflict with good
provide effective assistance in the                 manners, respectful and proper
settlement of the dispute. Should a                 conduct, which would compromise its
NARKS member refuse to submit to the                dignity and good reputation of a real
decision of the Supervisory Board, the              estate agency. The broker can only
latter may file a motion for expulsion              employ the means acceptable by legal
under Chapter III, Article 1 par. 5 of the          regulations.
Constitution of NARKS.                           2. In the performance of its profession, a
                                                    broker is obliged to take care of its
               CHAPTER II                           good behaviour and overall appearance
                                                    (including clothing), so that its
              Professionalism                       seriousness corresponds to the standard
                                                    required of professionals and so that a
      There are four aspects of the                 broker at the same time represents
   significance of the Code of Ethics:              NARKS by its behaviour.

                                                                  Article 2
 Code of Ethics of the National Association of Real Estate Offices
                            of Slovakia
                                                                   Article 5
       Independence of a Member
                                                              Client's Interests
1. The relation of a member to clients,
   courts, authorities and other parties             In the provision of the services a
   while performing its profession is                NARKS member shall protect interests
   governed by the principle of                      of its client in accordance with the
   independence.                                     Code of Ethics.
2. A member is obliged to avoid
   interference in its independence                                Article 6
   (including interference arising from its
   personal interests) and must make an                     Provision of Services
   effort not to reduce its professional
   criteria only to satisfy its client, another   1. A broker only provides services based
   body or a third party.                            on authorisation by the client.
                                                  2. A broker provides services without
                  Article 3                          undue       delay,    diligently      and
                                                     responsibly. S member is personally
                    Trust                            responsible for each service provided
                                                     in accordance with the generally
1. The relationship of a member and its              binding legal regulations.
   client is based on mutual trust.               3. A broker is obliged to:
2. With respect to the performance of its            a) continuously notify its client of the
   profession a member must not make an                  development of the case entrusted
   audio or video recording of a                         to the broker,
   discussion with a client or another               b) to notify the client without undue
   person regarding the subject of                       delay of all important actions and
   brokerage in a concealed manner.                      inform the client of the essential
3. A broker cannot use audio or video                    written documents received or sent,
   recording provided by the client for the          c) to respond to client's requirements
   purposes other than real estate                       in reasonable time,
   activities.                                       d) to exercise due care in the handling
                                                         of documents entrusted to the
                  Article 4                              broker, to protect them against
                                                         damage, loss, theft or destruction
              Confidentiality                            and to take all the necessary
                                                         measures to protect them from
1. The obligation of a member and its                    unauthorised parties.
   employees to keep confidential shall           4. A broker provides services in the
   survive the commission (is unlimited).            matters that the broker is able to handle
2. A member is obliged to request that its           professionally. Otherwise a broker can
   employees and any other persons with              approach a professional.
   which the member cooperates in the
   provision of legal assistance to keep                           Article 7
   confidential to the same extent as the
   member itself.                                     Fee for the Provision of Services
 Code of Ethics of the National Association of Real Estate Offices
                            of Slovakia
1. A member provides services for              3. A member is obliged to keep separately
   consideration in accordance with the           from other financial resources full and
   applicable legal regulations.                  accurate records on the disposal of the
2. When determining the amount of                 financial resources of the client and
   commission, the members undertake to           present these records to the client at the
   respect its standard amount for the            client's request at any time.
   respective brokerage area.                  4. The Provisions of par. 1 through 3 shall
3. A member may only provide services             also apply accordingly to the disposal
   free of charge in the event of an              of other entrusted asset values of
   information meeting or in exceptional          clients.
4. After the settlement of each matter, a                       Article 9
   member is obliged to duly charge its
   clients for its handling.                      Representation before Authorities
5. If a member asks its client to pay an
   advance fee or cost reimbursement,          1. In contact with authorities, a member is
   such advance payment cannot exceed             obliged to behave in a civil and proper
   reasonable       estimated    fee and          manner and contribute by its conduct
   anticipated costs incurred in the              before authorities to the dignity and
   provision of the services in the               seriousness of acts in which the
   respective matter.                             member participates.
6. The concessions can be received from        2. A member is obliged to represent the
   clients who ordered the services with          interests of its client honestly, in the
   the real estate agency.                        manner within the limits provided by
                                                  law assumed to be the most beneficial
                Article 8                         for its client while ensuring the
      Client's Financial Resources                necessary respect and courtesy in
                                                  relation to authorities.
1. If a member was entrusted financial
   resources for the client or a third party                 CHAPTER IV
   as part of the purchase price or as a
   whole, the member is obliged to:              Relations between NARKS Members
   a) deposit such resources without
       delay in a bank account, unless the                      Article 1
       client expressly approved a
       different procedure, i.e. bank letter                   Collegiality
       of credit, blockage of bank book or
       notary custody,                         1. Relations between members are
   b) ensure the payment of such                  governed by the principle of
       financial resources immediately at         corporative       and        professional
       the client's request or upon the           collegiality based on trust and
       meeting of the terms approved by           cooperation in the interest of their
       the client.                                clients and in order to avoid disputes.
2. A member must not use the client's          2. Each member is obliged to respect
   financial resources for a purpose other        other members as its colleagues and
   than their intended purpose.                   treat them with courtesy and respect.
 Code of Ethics of the National Association of Real Estate Offices
                            of Slovakia
3. Personal and unrelated to the matter                Real Estate Agency Name
   written or oral attack against a
   colleague is a breach of collegiality                        Article 1
4. If in the opinion of a member another               Real Estate Agency Name
   member behaves in conflict with these
   rules, the member is obliged to warn        1. A member can only use one name of its
   the respective member thereof in a             agency.
   suitable manner. Where no remedy            2. The name of the agency in the case of a
   takes place, a member can turn to the          natural person is comprised of the
   respective body.                               name and surname of a member and an
5. Before filing an action or other motion        addition specifying that it is a real
   against another member, a member is            estate agency. The name may also
   obliged to provide this other member           include the academic degree of a
   with the opportunity to attempt out-of-        member.
   court settlement of the matter before       3. Where a member provides services as a
   the Supervisory Board of NARKS.                legal entity, its name should also
6. A member is bound to secrecy during            include a title specifying that the entity
   the disciplinary procedure.                    performs real estate activities.
                                               4. In the documents, correspondence,
                 Article 2                        promotion materials a member is also
                                                  entitled to use the logo NARKS, or
               Cooperation                        memberships of other legal entities.

1. A member approached by another                               Article 2
   member with a specific business case is
   obliged to inform the other member                          Promotion
   immediately about the way of handling
   of the member's request, or inform the      1. A member is obliged to present itself in
   member of the obstacles preventing             particular by superior performance of
   him/here therein. In the event of              its     profession    and   reasonable
   cooperation in a common business, a            promotion.
   member is obliged to present the            2. A member is obliged to ensure that the
   respective documents upon request.             envelopes, letterhead paper, stamps,
2. A member is obliged to accept from             business cards and other forms of the
   another member duly delivered written          publication of information about its
   correspondence and confirm its                 activities that the member uses are
   acceptance without undue delay.                appropriate. A member cannot state on
3. A member who learns of being                   printed     materials    complimentary
   authorised by the client to represent the      information        or      information
   client in a certain matter instead of          inadequately praising a member or a
   another member is obliged to notify the        service provided by the member.
   respective member thereof without           3. Name lists of members are issued by
   undue delay.                                   NARKS.

              CHAPTER V                                         Article 3
 Code of Ethics of the National Association of Real Estate Offices
                            of Slovakia
   Termination or Suspension of the
        Provision of Services

1. In the event of the termination or a
   longer lasting suspension of the
   provision of services a member is
   obliged to
   a) settle its obligations with respect to
       NARKS, clients and other members
       and to satisfy its obligations to
       courts, authorities and all tax
   b) appoint a member as its
       representative and if a member fails
       to do so, to communicate this fact
       to NARKS without undue delay.

              CHAPTER VI

             Final Provisions

1. Every broker should deem compliance
   with this Code of Ethics to be a matter
   of its professional honour.
2. The Code of Ethics was accepted by
   both founding members of NARKS.

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