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. cases. 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 principles. 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 obligations, 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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