| Code of Ethics and Professional Client Care |
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| Application of Code to estate agents and salespersons |
1.—(1) This Code shall be known as the Code of Ethics and Professional Client Care and shall apply to every licensed estate agent and every registered salesperson.| (2) This Code sets the standard of performance required of estate agents and salespersons in their dealings with clients and the public while carrying out estate agency work. |
| (3) This Code must be read in conjunction with the Estate Agents Act 2010 (“the Act”) and practice circulars or guidelines issued by the Council for Estate Agencies (“the Council”) from time to time. |
| (4) A failure to observe this Code or any law applicable to estate agents and salespersons may constitute unsatisfactory professional conduct or professional misconduct. |
| (5) An offer, attempt, inducement or instigation to do anything that would constitute a breach of this Code if fully executed or completed is also a breach of this Code. |
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2. In this Code, unless the context otherwise requires —| “clients” includes prospective clients or customers; |
| “practice circulars or guidelines” means practice circulars or guidelines in relation to estate agency work which the Council may issue from time to time. |
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3.—(1) Estate agents and salespersons who breach any provision of this Code may be subject to disciplinary action before a Disciplinary Committee formed under the Act.| (2) A breach of any provision of this Code may result in the imposition of sanctions including financial penalties, demerit points and the suspension or revocation of a licence or registration under the Act. |
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| Knowledge of and compliance with applicable laws, practice circulars and guidelines |
4.—(1) Estate agents and salespersons must perform their work in accordance with applicable laws and must not perform estate agency work unless they have the relevant knowledge to perform the work that they are engaged to perform.(2) Sub-paragraph (1) means, among other things, that estate agents and salespersons —| (a) | must be fully conversant and comply with the Act, the regulations made under the Act (including this Code and in the case of estate agents, the Code of Practice for Estate Agents), and the policies, practice circulars and guidelines of the Council; | | (b) | must be fully conversant and comply with relevant laws, regulations and rules that apply to property transactions; | | (c) | must keep themselves informed of essential or relevant facts and developments in the property market and matters that could affect any aspect of property transactions; | | (d) | must be familiar with the procedures for property transactions, and the contents of the forms used; and | | (e) | must not undertake estate agency work in respect of Housing and Development Board flats unless they are fully conversant and comply with the applicable laws, regulations, rules and procedures that apply to transactions involving such flats. |
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| Due diligence and compliance with law and statutory requirements |
5.—(1) Estate agents and salespersons shall conduct their business and work with due diligence, despatch and care, and in compliance with all laws including statutory and regulatory requirements, and practice circulars and guidelines.(2) Sub-paragraph (1) means, among other things, that estate agents and salespersons, in conducting estate agency business or work —| (a) | must comply with and shall not do or attempt to do anything that infringes, or which may directly or indirectly lead to the infringement by any person of any law; and | | (b) | must take all reasonable precautions and do all reasonable acts to ensure that no law is infringed by any person. |
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| General duty to clients and public |
6.—(1) Estate agents and salespersons shall render professional and conscientious service to their clients and shall act with honesty, fidelity and integrity.(2) Sub-paragraph (1) means, among other things, that estate agents and salespersons —| (a) | must act according to the instructions of the client and protect and promote the interests of the client, unaffected by the interests of the estate agent, salesperson or any other person; | | (b) | must not mislead the client or provide any false information or misrepresent any relevant law or fact to the client; | | (c) | must keep the client informed of any material or relevant development or issue in respect of the property of the client; | | (d) | must not withhold any relevant fact or information from the client; and | | (e) | must not act against the interests of the client in any manner, including collaborating in any form or manner with any other person. |
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| (3) In the conduct of estate agency work on behalf of the client, the estate agent or salesperson must act ethically, honestly, fairly and in a reasonable manner towards all other persons. |
(4) Sub-paragraph (3) means, among other things, that estate agents and salespersons —| (a) | must not collaborate with or induce or attempt to induce the client or any other person to engage in illegal, dishonest or unethical practices; | | (b) | must not overstate or convey a false impression of any relevant information; and | | (c) | must not mislead or provide any false information or misrepresent any relevant law or fact. |
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| Not to bring discredit or disrepute to real estate industry |
7.—(1) Estate agents and salespersons shall not do anything that may bring discredit or disrepute to the estate agency trade or industry.(2) Sub-paragraph (1) means, among other things, that estate agents and salespersons —| (a) | must not do anything that may be fraudulent, dishonest, deceitful or misleading; | | (b) | must not engage in touting; and | | (c) | must not use threatening or harassing tactics or apply unreasonable or improper pressure. |
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| (3) Any opinion that is rendered by an estate agent or a salesperson to the client or any other person shall be justifiable by reference to verifiable facts and shall be given with strict professional integrity, objectivity and courtesy. |
| (4) Estate agents and salespersons must not solicit for the payment of any reward, commission or fee from any person who did not engage their services. |
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| Duty to clients in relation to signing of documents |
8.—(1) Estate agents and salespersons must give the client sufficient time to read any form or document before asking or allowing the client to sign the form or document.| (2) Before asking or allowing a client to sign any form or document, estate agents and salespersons must explain the meaning and consequences of the provisions of the form or document. |
| (3) An estate agent or salesperson with any doubt in relation to any form or document must inform the client accordingly and advise the client to seek advice from appropriate professionals. |
| (4) The client must be given a copy of any form or document that he signs either immediately or as soon as possible after signing. |
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| Obligations in respect of agreements |
9.—(1) Estate agents and salespersons must ensure that all agreements concerning financial obligations and commitments in respect of any transaction are in writing, and record the exact agreement between the parties concerned.(2) Estate agents and salespersons shall also comply with the following requirements:| (a) | they must procure signatures of all joint vendors or landlords for the sale or lease of property, and those of all joint buyers or tenants for the purchase or rental of property; | | (b) | they must ensure that a copy of the agreement is given to every person who signs the agreement, either immediately or as soon as possible after signing; | | (c) | they must allow any party reasonable time to read the agreement before signing it, and to seek appropriate advice if he or she so desires; and | | (d) | they must not ask or procure anyone to sign an agreement in which essential or material terms or information such as the property address, price, dates, names, and commission payable have been omitted or the relevant space for such terms or information is left blank or unfilled. |
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| Conveying offers, counter offers, etc. |
| 10. An estate agent or salesperson shall submit every offer, counter-offer, proposal or expression of interest received to his client accurately, objectively and as soon as possible after receiving it. |
| Interpretation or translation if necessary |
| 11. An estate agent or salesperson shall ensure that any information or explanation is conveyed to the client in the language or dialect that the client understands. |
| Duties in respect of advertisements |
12.—(1) Estate agents and salespersons must ensure that they are correctly and clearly identified in —| (a) | all their advertisements and promotional materials; and | | (b) | their correspondence, email signatures, letterheads, notepapers and name, calling or any other cards. |
(2) Sub-paragraph (1) means, among other things, that the following information must be correctly and clearly stated —| (a) | the name and contact number of the estate agent and salesperson as registered with the Council; and | | (b) | the licence and registration numbers of the estate agent and salesperson. |
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| (3) Where advertisements are in the form of classified advertisements printed in newspapers, the estate agent or salesperson must use the name and contact numbers that are registered with the Council but need not state the licence or registration number of the estate agent or salesperson. |
(4) Estate agents and salespersons must also comply with the following requirements in respect of any form of advertising including name, calling or any other cards:| (a) | they must not cause or allow to be made any advertisement that contains any offer, proposal, statement, representation, claim or information that is inaccurate, false or misleading; | | (b) | they must ensure that all materials that advertise or promote a property accurately describe the property; | | (c) | any claims of expertise, specialisation or success rate can be substantiated by verifiable facts and records; | | (d) | they must obtain the prior agreement of the client before advertising any property of the client for any purpose, including sale or rental; | | (e) | they must not advertise any property at a price or on other terms, or in any manner, different from those instructed by the client; | | (f) | the advertisement shall not include any transaction information about any specific property (including the name of the parties, the sale and purchase price, rent payable and any other terms of the transaction), without the consent in writing of all the parties to the transaction, regardless of whether the salesperson or estate agent had been involved in the transaction; | | (g) | the advertisement and its placement shall not directly or indirectly infringe any law or legal rights; and | | (h) | they must remove all advertisements in relation to a property once the property is no longer available for sale or rental for whatever reason, or after the termination of the estate agency agreement in respect of the property. |
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| Duty to avoid conflict of interests |
13.—(1) Estate agents and salespersons must not accept an appointment by or continue to act on behalf of a client where to do so would place the agent’s or salesperson’s interests in conflict or potential conflict with those of the client.(2) Sub-paragraph (1) means, among other things, that —| (a) | estate agents and salespersons must, as soon as possible, declare in writing to the client any interest which may arise at any time and be in direct or indirect conflict with that of the client; | | (b) | if, on the grounds of confidentiality or for any other reason, an estate agent or salesperson is unable to make a declaration of conflict or potential conflict, the estate agent or salesperson shall decline to act for or withdraw from acting for the client; | | (c) | unless the client being fully informed of any conflict or potential conflict, consents to the estate agent and salesperson acting or continuing to act for him, the estate agent and salesperson shall decline to act for or withdraw from acting for the client; | | (d) | estate agents and salespersons must not acquire directly or indirectly, the property of the client or any right or interest in the property of the client, without the express knowledge and consent of the client; and | | (e) | subject to any written law, estate agents and salespersons must not directly or indirectly accept any fee, reward, commission, rebate or other payment for the referral of any services rendered or to be rendered by third parties to the client or any other party, in connection with a transaction involving the client, without the express knowledge and prior consent in writing of the client. |
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| (3) Sub-paragraph (2)(e) means, among other things, that the estate agent or salesperson, as the case may be, must disclose in advance, and in writing, both the fact and quantum of such fee, reward, commission, rebate or other payment. |
| (4) Estate agents and salespersons must not engage in any business, work or professional activity where such business, work or activity would, or could reasonably be expected to, compromise the discharge of their obligations to their clients. |
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| Recommending professional advice where appropriate |
| 14. Estate agents and salespersons shall advise and encourage the parties to a transaction or proposed transaction to seek the advice of appropriate professionals, including but not limited to solicitors, tax advisers, appraisers and valuers, where there is any material matter or issue that is beyond their knowledge or expertise. |
| Safeguarding confidential information |
15.—(1) Estate agents and salespersons shall not disclose or otherwise use any confidential information of or relating to the client that is obtained from the client or obtained in the course of acting for the client unless the disclosure or use is made with the consent of the client, or is otherwise required or allowed by the law.| (2) Disclosure under sub-paragraph (1) may be made only to the appropriate person and only to the extent authorised and extent necessary for the permitted purpose. |
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