EBA Code Of Ethics
NAEBA members recognize that exclusive buyer agency must be founded upon strict adherence to the legal principles of agency with ethical standards that may surpass minimum legal standards.
An agency relationship therefore requires that we serve our Clients by providing five (5) measurable commitments of our ethical principles as described below. Through our commitment to those principles, our integrity, and our professionalism we serve our clients, our community, and our country. NAEBA therefore sets forth the following Code of Ethics:
Article 1: Fiduciary Responsibility
A buyer’s agent owes his principal a duty to act in a manner that is trustworthy and which inspires confidence that the agent will always act in the principal’s best interest.
1.01 An exclusive buyer’s agent shall represent the best interest of the client and only the client while serving in the capacity of agent for the client in any matter related to the purchase of any real estate.
1.02 An exclusive buyer’s agent shall not represent any client where a conflict of interest exists.
1.03 An exclusive buyer’s agent shall not knowingly direct a client to any service which is less than what is in the best interest of the client.
Article 2: Duty of Accounting
An exclusive buyer’s agent shall provide a true account of money and/or any other property entrusted to them, received by them, or paid out on behalf of the principal whenever requested.
2.01 An exclusive buyer’s agent shall be employed by a client as evidenced by a written agreement which specifically states the services to be provided, the service fee structure, the method of payment for services, and the beginning and ending date of the agreement.
2.02 An exclusive buyer’s agent shall not accept any compensation or gift resulting from expenditures made by or for their client not specified in the representation agreement.
2.03 An exclusive buyer’s agent shall account to his principal by disclosing any referral income that might be received through referring that client to a listing agent.
Article 3: Duty of “Care” or Competence
An exclusive buyer’s agent shall act on behalf of a client with diligence, professionalism, and reasonable technical knowledge.
3.01 An exclusive buyer’s agent shall hold a valid real estate license issued by the appropriate state governing agency.
3.02 An exclusive buyer’s agent shall be accountable for his/her actions and should therefore document all substantive events which occur during the agency relationship.
3.03 An exclusive buyer’s agent shall assist in negotiating price and terms as directed by the principal.
3.04 An exclusive buyer’s agent shall be responsible for researching a targeted property and its surroundings whenever possible to discover all material information.
3.05 An exclusive buyer’s agent shall disclose to other agents or unlicensed individuals upon first contact that he/she is acting as the buyer’s agent.
3.06 An exclusive buyer’s agent shall not undertake specialized services for which they are not qualified.
Article 4: Duty of Loyalty
An exclusive buyer’s agent shall remain loyal to their principal throughout any real estate purchase and will not reduce the level of that loyalty through “informed consent”.
4.01 An exclusive buyer’s agent shall be loyal, never doing anything which might jeopardize the client’s bargaining position or other interest.
4.02 An exclusive buyer’s agent shall keep all sensitive information concerning his/her client confidential unless authorized by client or required by law.
4.03 An exclusive buyer’s agent must relate everything material he/she knows about the seller to the client.
Article 5: Duty of Obedience
NAEBA members acknowledge and accept the agency responsibility to obey all reasonable, lawful instructions of their principal in regard to the manner of performing the real estate services contracted. While agreeing to follow the principal’s instructions, it is also the member’s responsibility to counsel and advise their principal where the principal’s action may be unwise based upon the member’s real estate experience and professional judgment.
5.01 An exclusive buyer’s agent shall obey all lawful instructions of the client.
5.02 An exclusive buyer’s agent shall obey all State laws and regulations in the jurisdictions in which they do business.