Real Estate Code Of Ethics
Code of Ethics
Minnesota Commercial Association of Real Estate
Effective January 1, 2011
The MNCAR Code of Ethics provides ethical guidelines to members of the Minnesota Commercial Association of Real Estate (MNCAR) to enable MNCAR members (“Members”) to conduct business in accordance with the highest standards of integrity and honesty. It is intended to uphold integrity in the Commercial Real Estate industry and to ensure public trust in the Commercial Real Estate profession. This Code of Ethics should serve to empower Members to treat others as they would expect to be treated themselves.
As used herein, the term “Client” will mean any person or entity with whom a Member has entered into a written agency agreement or has a legally recognized fiduciary responsibility, whether written or not.
Article 1: Client Responsibility
Members pledge to treat all parties in a transaction with respect, integrity and honesty. When engaged by a client, Members pledge to protect and promote the interests of their Client. Members will avoid misrepresentation in all cases.
Article 2: Disclosure
2.1. Disclosure of Material Facts
Members will disclose all material facts relating to the property or the transaction without intentional misrepresentation and without disclosing confidential facts as defined by state law.
2.2. Disclosure of Potential Conflicts of Interest
Members will appropriately disclose their own interest or involvement in a transaction so as to alleviate any potential conflict of interest. Where appropriate, such disclosure will be provided to the Client in writing.
2.3. Disclosure of Compensation
Members will disclose all compensation to all parties in a transaction to which they have a fiduciary duty.
Article 3: Funds Management
Members will manage funds in a prudent manner and in accordance with Minnesota license law, related to a transaction and in the course of all dealings with Clients.
Article 4: Written Agreements
All written agreements will be clearly written, appropriately executed, and distributed to interested parties upon their signature. Members will avoid misrepresentation through ambiguous language. Members will write all contracts so that they comply with federal, state and local laws.
Article 5: Truth in Advertising
Members will ensure that all advertising and sales promotions are factually accurate, avoiding deceptive or misleading practices.
Article 6: Additional Client Services
Members will recommend to Clients additional professional services, including legal counsel, when in the Client’s best interests.
Article 7: Dispute Resolution
In the event of commission or ethics disputes between Members associated with different firms, Members agree to act in accordance with the dispute resolution policies and procedures outlined in the MNCAR Bylaws and MNCAR Dispute Resolution Policy rather than litigate the matter.
Article 8: Non-Discrimination
Members will not discriminate against any party because of race, color, religion, gender, affectional preference, age, disability, veterans’ status, national origin or other protected class.
Article 9: Cooperation
Cooperation amongst Members is encouraged so long as the fiduciary responsibility of clients is respected. Compensation is to be negotiated between brokers on a case-by-case basis and in a good faith manner. Members will respect and not disparage competitors in the course of business.
Article 10: Antitrust
Members will refrain from any act intended to restrain trade or suppress competition.
Article 11: Professionalism
Members will provide quality service and maintain professional standards through education, and a thorough understanding of industry best practices. Members will attain and retain licensing as required by federal, state and local authorities.
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