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CHAPTER I - GENERAL OBLIGATIONS |
| ARTICLE 1 - OBJECTIVE |
| The object of this Code of Ethics is to determine the way in which the Real Estate Agent should behave when carrying out his profession. |
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ARTICLE 2 - GENERAL OBLIGATIONS |
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In addition to the defence of the interests that are entrusted to him, the obligations of the Real Estate Agent include striving to protect the prestige of the profession and to improve the technical aspects of real estate transactions that he is involved with. He must show himself worthy of the respect and responsibilities that are part of his work. |
| ARTICLE 3 - FULFILMENT OF OBLIGATIONS |
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The Real Estate Agent must comply with the obligations set out in this code of Ethics punctually and diligently. |
| ARTICLE 4 - PREPARATION AND DIGNIFYING OF THE ACTIVITY |
| It is a fundamental obligation of the Real Estate Agent to be well prepared technically and to be well informed with regard to market conditions and changes in order that he can carry out his job with rigour, competency and professionalism, thus contributing to social progress and to the public recognition and the dignifying of the activity. |
| ARTICLE 5 - UP-TO-DATE KNOWLEDGE |
| The Real Estate Agent should be aware of changes and trends in regional, national and European Union real estate matters in order to be able to be able to provide clarifications to consumers and the general public with regard to urbanism, real estate legislation or other questions related to real estate. |
| ARTICLE 6 - COOPERATION WITH ASSOCIATION OF REAL ESTATE AGENTS |
| With a view to seeing his activity gain more dignity and prestige, the Real Estate Agent should seek to cooperate actively with his respective Real Estate Agent Association so that this in turn can strengthen its institutional weight. The main tasks of the Association should be to seek to protect the rights and interests of its associates and to raise public awareness of the economic importance and social usefulness of real estate agency activity, while contributing to the sector's organisation and regulation. |
| ARTICLE 7 - RELATIONSHIP WITH ASSOCIATION OF REAL ESTATE AGENTS |
| The Real Estate Agent has the obligation to promote the existence, purposes and prestige of his Association. He should accept the positions and roles that may be entrusted to him and he should cooperate with those people who are appointed to carry out any functions in the respective governing bodies. When requested to do so he should participate actively in the Association's seminars, conferences, assemblies and other events. |
| ARTICLE 8 - DUTIES OF THE REAL ESTATE AGENT |
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The Real Estate Agent must:
a) Defend the interests of his client;
b) Respect and add to the prestige of his profession;
c) Ensure that his relevant knowledge is always up-to-date;
d) Strive for the application of the laws that govern his activity, as well as that of all laws that are applicable to him;
e) Not act as an agent in relation to, or promote, actions that are known to be illicit and that might damage the prestige of the sector or the professions to which he belongs;
f) Cooperate mutually with clients as well as with other Real Estate Agents;
g) Refuse to act as an agent in processes that he considers do not comply with market rules;
h) Seek out and listen to, when necessary, the views of the Real Estate Agents Associations;
i) Protest against instances where he knows that the law has been broken;
j) Always denounce any illicit situations or activities that discredit real estate agents and that might affect their good name;
k) Not issue or authorise the use of deceitful advertising and immediately denouncing any examples of this type of situation that he becomes aware of;
l) Not sign contracts the provisions of which are contrary to the law;
m) Always carry his professional identification card;
n) Act in conformance with the principle of good negotiating faith, as well as respecting all contracts that he signs;
o) Not act as a legal consultant;
p) Not carry out any acts of unfair competition.
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| ARTICLE 9 - RIGHTS OF THE REAL ESTATE AGENT |
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The Real Estate Agent has the following rights:
a) The right of professional confidentiality;
b) The right to be remunerated for the services that he has provided, in the terms of the current laws;
c) The right to refuse positions and roles that might discredit his activity or that are illicit;
d) The right to denounce facts or behaviour indicative of the practice of illicit acts;
e) The right to protest against and report any incorrect behaviour by consumers;
f) Although the Real Estate Agent cannot act as a legal consultant he can use a legal consultant to support his activity;
g) The Real Estate Agent is free to set his fees although he should act with moderation and consider the specific case in question and the degree of professional qualification that is used therein;
h) In relation to other amounts and documents in his power, the Real Estate Agent has the right to retain them to guarantee the effective payment of his fees;
i) The right to be supported by the respective sector Association, benefiting from his status as an associate as long as he has complied with all his obligations in this regard.
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| ARTICLE 10 - DENOUNCING OF ILLICIT BEHAVIOUR |
| The Real Estate Agent must cooperate with the public bodies that have the task of inspecting and regulating real estate agency activity on a national level. He should always denounce behaviour or facts that indicate illicit acts. |
| ARTICLE 11 - PROTECTION OF RIGHTS AND INTERESTS |
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1. The Real Estate Agent should protect himself against improper conduct on the part of consumers in the form of defamatory acts directed against him, the violation of the rules that govern this activity and disrespect for agreements that have been signed.
2. It is the obligation of the professional organisations of this sector to make efforts to explain the relevance of real estate agency activity using press articles, conferences, seminars, personal contacts and other means that are considered to be suitable.
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| ARTICLE 12 - PRIOR INFORMATION |
| Previous to acceptance, the Real Estate Mediator should seek information related to all essential facts of the object of the mediation in such a way the he may be able to carry out his obligation, avoiding dissimulation of the essential facts of the business or omission of details that depreciate it, as well as verification of errors of exaggeration. |
| ARTICLE 13 - SIGNATURE OF FALSE DOCUMENTS |
| The Real Estate Agent must not sign any document that appears to contain elements that are incorrect because they are false or forged. |
| ARTICLE 14 - PROHIBITION FROM CARRYING OUT FUNCTIONS THAT ARE EXCLUSIVE TO OTHER PROFESSIONS |
| The Real Estate Agent should not act as a legal consultant or carry out any acts that are exclusively attributed under law to other professions. The Real Estate Agent should recommend the intervention of a lawyer or solicitor when this would be in the best interests of either party.
However, the Real Estate Agent can be supported by, or use the services of, a legal consultant in the carrying out of his work.
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| ARTICLE 15 - SUMS DELIVERED BY THIRD PARTIES |
| When he is not able to deliver immediately to clients the sums that are due to them and that have been given to him by third parties in the course of his work, he must keep such sums in a bank account set up for this purpose. Such funds must be kept separate from his own funds and he must undertake to deliver such funds to the respective clients as soon as possible. |
| ARTICLE 16 - WAY OF ADVERTISING |
| In his advertising the Real Estate Agent must take special care to describe the exact nature of the deal that he is proposing. He must not publish any advertisement that does not expressly include the name of his company and the number of his respective activity licence. He must provide all his employees with professional identity cards that they can show when requested. |
| ARTICLE 17 - WAY OF BINDING |
| To protect all interested parties, the Real Estate Agent must ensure that all commitments that involve financial sums and the agreements that govern real estate transactions are made in writing. He must ensure that all parties are given an original version of such contracts after signature. |
| ARTICLE 18 - SECTOR PUBLICATIONS |
| The Real Estate Agent should encourage professional organisations to establish professional training schools and to set up newspapers, magazines and other specialised periodic publications that can provide sector professionals and the general public with correct, up-to-date and enlightening information. |
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CHAPTER - II CLIENT RELATIONSHIPS |
| ARTICLE 19 - OBLIGATIONS TO CLIENTS |
| When making a real estate agency contract, the Real Estate Agent undertakes to protect and promote the interests of his client. The basic obligation to be absolutely honest in his dealings with his client does not, however, free the Real Estate Agent from his obligation to treat all parties involved in the deal with due attention. |
| ARTICLE 20 - CARE AND EFFORTS MADE IN THE DRAWING UP OF CONTRACTS |
| It is the Real Estate Agent's obligation to provide his services to his clients in a diligent manner. He must always strive to ensure that the contracts are drawn up in writing in an accurate and clear way and that the parties involved sign them. |
| ARTICLE 21 - CHECKING OF AUTHORITY AND LEGITIMACY |
| Before signing the real estate agency contract the Real Estate Agent must check that the parties involved have the necessary authority and legitimacy to take part in the contract. He must also verify, using the means available, that the characteristics of the real estate that is the object of the contract correspond to those supplied by the interested parties. Furthermore, he must verify whether there are any charges or burdens pending over the real estate in question. |
| ARTICLE 22 - REPRESENTATION OF BOTH PARTIES |
| If the Real Estate Agent represents more than one of the parties involved in the transaction, he should only accept remuneration from the party that hired him first, unless there is express agreement to the contrary by all parties involved in the deal. |
| ARTICLE 23 - REMUNERATION FOR SERVICES RENDERED |
| It is the obligation of the Real Estate Agent only to charge for the services that he has actually rendered. These should be in accordance with the remuneration values previously agreed in the signed contract. |
| ARTICLE 24 - DEFENCE OF CONSUMERS' INTERESTS |
| It is the obligation of the Real Estate Agent not to mislead the public or to use deceitful advertising. He must also abstain from illicit practices such as breach of trust, deceit or fraud and must refuse to sign any type of contract that is unjust or contrary to the law. |
| ARTICLE 25 - EXCLUSIVITY |
| Although exclusivity is not an obligatory requisite, the Real Estate Agent must encourage and promote the practice of carrying out the activity of real estate agent on an exclusive basis in order to avoid mistakes and disagreements and to serve the client better. It is, however, acceptable that the exercising of an exclusive real estate arrangement should be bound by a pre-established time limit. |
| ARTIGO 26 - DEMONSTRATION OF ACCOUNTS |
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1. The Real Estate Agent should present detailed accounts of his expenses and fees as soon as a deal is concluded or in other situations when this is justified and when requested by the client.
2. A receipt or other document legally valid for this purpose should be given for all amounts that the client pays to the Real Estate Agent for his services or that the client gives him for any similar reason.
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| ARTICLE 27 - EVALUATIONS |
| When requested to carry out an evaluation, the Real Estate Agent should only carry out a market evaluation. He should not undertake to carry out real estate evaluations of a strictly technical nature that exceed his experience and professional knowledge without the help of a specialist. In these conditions the specialist should be a person that is recognised as such professionally and the limits of his involvement must be clearly defined. |
| ARTICLE 28 - IN-DEPTH CONSIDERATION OF THE EVALUATION |
| When, at the request of a client, the Real Estate Agent has the mission of carrying out a market evaluation of a property, he must not give his opinion without having made a complete and detailed analysis of all the factors that might influence the value of the property. |
| ARTICLE 29 - AUTHORIZATION TO ACT AS AGENT AND SETTING OF THE PRICE |
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1. The Real Estate Agent must not promote or advertise a property unless he has the express authorisation or mandate of the principal.
2. The price indicated in the deal to be promoted must have been previously agreed with the client. This will then be considered as the price effectively put on the property. |
| ARTICLE 30 - RECEIPT OF SEVERAL OFFERS |
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When more than one offer for the property is received from potential buyers and the respective owner has not expressly shown any intention of accepting them, the Real Estate Agent must submit the offers to the client in order for the latter to reach a decision regarding them. |
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CHAPTER III - RELATIONSHIPS WITH FELLOW REAL ESTATE AGENTS |
| ARTICLE 31 - FAIRNESS |
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In all business dealings the Real Estate Agent must not attempt to gain unfair advantages over his fellow real estate agents. He must be prepared to share the results of his studies and his professional experience with them. |
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ARTICLE 32 - GOOD MANNERS |
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The Real Estate Agent must not comment on or criticise to third parties the real estate agency services rendered by a fellow professional. However, if he is asked to give his opinion in any circumstances he should express this with appropriate professional integrity and courtesy. |
| ARTICLE 33 - DISPUTES WITH PROFESSIONALS IN THE SECTOR |
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The Real Estate Agent should conduct his affairs in such a way as to avoid disputes with fellow professionals. In the case of a dispute between professionals who belong to the same Real Estate Association, an attempt can be made to resolve the referred conflict by this organisation, by the application of the rules contained in this Code of Ethics. |
| ARTICLE 34 - OBLIGATION TO COOPERATE IN THE EXAMINATION OF A COMPLAINT |
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If a complaint is made by professional colleagues or clients regarding a Real Estate Agent and such a complaint concerns practices contrary to the professional ethics that are set out in this Code or in current legislation, the referred Real Estate Agent must, when requested, provide the competent public authorities with all the paperwork and documentation related to the deal in question in order that the facts that gave rise to the complaint can be determined and any responsibilities can be established. |
| ARTICLE 35 - RESPECT OF EXCLUSIVITY |
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Taking account of the provisions of article 25 of this Code, in the relationships established between themselves and with clients, sector professionals must respect all situations in which exclusivity has been attributed to a certain Real Estate Agent in a real estate agency contract. |
| ARTICLE 36 - SHARING OF REMUNERATION |
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The sharing of remuneration by Real Estate Agents in situations in which they jointly participate in the same business deal must always be made in accordance with a previously fixed agreement in order to avoid any dispute when the deal is concluded. |
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ARTICLE 37 - COOPERATION BETWEEN REAL ESTATE AGENTS |
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When several sector professionals are offered a deal to act as agents for the same business object on a non-exclusive basis, these may, if they so wish, cooperate with each other, exchanging information on available products and presenting potential principals to deals that other colleagues may have in their portfolios. In such cases the bases of the agreement and the distribution of the respective commissions are freely agreed by the real estate agents involved. |
| ARTICLE 38 - AFFIXING OF ADVERTISEMENTS |
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Information signs with expressions such as: «for sale», «for exchange», «for rent», and other similar phrases, must not be affixed by more than one Real Estate Agent and then only with the authorisation of the respective owner, unless such authorisation has been granted jointly to several Real Estate Agents. |
| ARTICLE 39 - UNFAIR COMPETITION |
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Although there is no fixed minimum remuneration table, in order to avoid unfair competition the Real Estate Agent must not offer to provide his services for amounts that, irrespective of being fixed or linked to percentages, are clearly lower than those usually charged by other real estate agents in the region in which he carries out his activity. |
| ARTICLE 40 - APPLICABLE LAWS |
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For all matters that are not covered in this Code of Ethics the laws that are held to be relevant for the respective issue will be applicable. |
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APEMI, (Portuguese Association of Real Estate Companies - Associação Portuguesa das Empresas de Mediação Imobiliária) November 1999
For the Management
The Chairman
Eduardo Evangelista Luís
Note: This Code of Ethics was approved at the General Assembly held on 27th November 1999.
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