To give a better image of the profession
Work with conscience, dignity, loyalty, sincerity and probity.
2. COMPLIANCE WITH LAWS AND REGULATIONS
Do not discriminate.
Comply with laws and due diligence obligations.
3. SKILLS
Have the necessary and up-to-date theoretical and practical knowledge.
4. ORGANIZATION & MANAGEMENT OF THE COMPANY
Comply with legal and regulatory provisions.
Check employee clearances.
5. TRANSPARENCY
Always provide accurate, intelligible and complete information.
6. CONFIDENTIALITY
Remain cautious and discreet in the use of data, except where required by law.
7. ADVOCACY
To ensure the legitimate interests of constituents
Respect the rights of other parties.
8. CONFLICT OF INTEREST
Avoid any conflict of interest with principals or any other party.
9. CONFRATERNITY
To maintain benevolent relations, free, healthy and fair competition.
10. DISPUTE RESOLUTION
Endeavour to resolve any dispute amicably, in good faith and with responsiveness.
We are committed to:
While the Code of Ethics establishes obligations that may be higher than those mandated by law, in any instance where the Code of Ethics and the law conflict, the obligations of the law must take precedence.
Under all is the land. Upon its wise utilization and widely allocated ownership depend the survival and growth of free institutions and of our civilization. HILP MEMBERS should recognize that the interests of the nation and its citizens require the highest and best use of the land and the widest distribution of land ownership. They require the creation of adequate housing, the building of functioning cities, the development of productive industries and farms, and the preservation of a healthful environment.
Such interests impose obligations beyond those of ordinary commerce. They impose grave social responsibility and a patriotic duty to which HILP MEMBERS should dedicate themselves, and for which they should be diligent in preparing themselves. HILP MEMBERS, therefore, are zealous to maintain and improve the standards of their calling and share with their fellow HILP MEMBERS a common responsibility for its integrity and honor.
In recognition and appreciation of their obligations to clients, customers, the public, and each other, HILP MEMBERS continuously strive to become and remain informed on issues affecting real estate and, as knowledgeable professionals, they willingly share the fruit of their experience and study with others. They identify and take steps, through enforcement of this Code of Ethics and by assisting appropriate regulatory bodies, to eliminate practices which may damage the public or which might discredit or bring dishonor to the real estate profession. HILP MEMBERS having direct personal knowledge of conduct that may violate the Code of Ethics involving misappropriation of client or customer funds or property, willful discrimination, or fraud resulting in substantial economic harm, bring such matters to the attention of the appropriate Board or Association of HILP MEMBERS.
Realizing that cooperation with other real estate professionals promotes the best interests of those who utilize their services, HILP MEMBERS urge exclusive representation of clients; do not attempt to gain any unfair advantage over their competitors; and they refrain from making unsolicited comments about other practitioners. In instances where their opinion is sought, or where HILP MEMBERS believe that comment is necessary, their opinion is offered in an objective, professional manner, uninfluenced by any personal motivation or potential advantage or gain.
The term HILP has come to connote competency, fairness, and high integrity resulting from adherence to a lofty ideal of moral conduct in business relations. No inducement of profit and no instruction from clients ever can justify departure from this ideal.
In the interpretation of this obligation, HILP MEMBERS can take no safer guide than that which has been handed down through the centuries, embodied in the Golden Rule, “Whatsoever ye would that others should do to you, do ye even so to them.”
Accepting this standard as their own, HILP MEMBERS pledge to observe its spirit in all of their activities whether conducted personally, through associates or others, or via technological means, and to conduct their business in accordance with the tenets set forth below.
When representing a buyer, seller, landlord, tenant, or other client as an agent, HILP MEMBERS pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve HILP MEMBERS of their obligation to treat all parties honestly. When serving a buyer, seller, landlord, tenant or other party in a non-agency capacity, HILP MEMBERS remain obligated to treat all parties honestly.
HILP MEMBERS, when acting as principals in a real estate transaction, remain obligated by the duties imposed by the Code of Ethics.
The duties imposed by the Code of Ethics encompass all real estate-related activities and transactions whether conducted in person, electronically, or through any other means.
The duties the Code of Ethics imposes are applicable whether HILP MEMBERS are acting as agents or in legally recognized non-agency capacities except that any duty imposed exclusively on agents by law or regulation shall not be imposed by this Code of Ethics on HILP MEMBERS acting in non-agency capacities.
As used in this Code of Ethics, “client” means the person(s) or entity(ies) with whom a HILP MEMBER or HILP’s firm has an agency or legally recognized non-agency relationship; “customer” means a party to a real estate transaction who receives information, services, or benefits but has no contractual relationship with the HILP MEMBER or the HILP’s firm; “prospect” means a purchaser, seller, tenant, or landlord who is not subject to a representation relationship with the HILP MEMBER or HILP’s firm; “agent” means a real estate licensee (including brokers and sales associates) acting in an agency relationship as defined by state law or regulation; and “broker” means a real estate licensee (including brokers and sales associates) acting as an agent or in a legally recognized non-agency capacity.
HILP MEMBERS, in attempting to secure a listing, shall not deliberately mislead the owner as to market value.
HILP MEMBERS, when seeking to become a buyer/tenant representative, shall not mislead buyers or tenants as to savings or other benefits that might be realized through use of the HILP’s services.
HILP MEMBERS may represent the seller/landlord and buyer/tenant in the same transaction only after full disclosure to and with informed consent of both parties.
HILP MEMBERS shall submit offers and counteroffers objectively and as quickly as possible.
When acting as listing brokers, HILP MEMBERS shall continue to submit to the seller/landlord all offers and counteroffers until closing or execution of a lease unless the seller/landlord has waived this obligation in writing. Upon the written request of a cooperating broker who submits an offer to the listing broker, the listing broker shall provide, as soon as practical, a written affirmation to
the cooperating broker stating that the offer has been submitted to the seller/landlord, or a written notification that the seller/landlord has waived the obligation to have the offer presented. HILP MEMBERS shall not be obligated to continue to market the property after an offer has been accepted by the seller/landlord. HILP MEMBERS shall recommend that sellers/landlords obtain the advice of legal counsel prior to acceptance of a subsequent offer except where the acceptance is contingent on the termination of the pre-existing purchase contract or lease.
HILP MEMBERS, acting as agents or brokers of buyers/tenants, shall submit to buyers/tenants all offers and counteroffers until acceptance but have no obligation to continue to show properties to their clients after an offer has been accepted unless otherwise agreed in writing. Upon the written request of the listing broker who submits a counteroffer to the buyer’s tenant’s broker, the buyer’s/tenant’s broker shall provide, as soon as practical, a written affirmation to the listing broker stating that the counteroffer has been submitted to the buyers/tenants, or a written notification that the buyers/tenants have waived the obligation to have the counter-offer presented. HILP MEMBERS, acting as agents or brokers of buyers/tenants, shall recommend that buyers/tenants obtain the advice of legal counsel if there is a question as to whether a pre-existing contract has been terminated.
The obligation of HILP MEMBERS to preserve confidential information (as defined by state law) provided by their clients in the course of any agency relationship or non-agency relationship recognized by law continues after termination of agency relationships or any non-agency relationships recognized by law. HILP MEMBERS shall not knowingly, during or following the termination of professional relationships with their clients:
1) reveal confidential information of clients; or
2) use confidential information of clients to the disadvantage of clients; or
3) use confidential information of clients for the HILP®’s advantage or the advantage of third parties unless:
a) clients consent after full disclosure; or
b) HILP MEMBERS are required by court order; or
c) it is the intention of a client to commit a crime and the information is necessary to prevent the crime; or
d) it is necessary to defend a HILP MEMBER or the HILP’s employees or associates against an accusation of wrongful conduct.
Information concerning latent material defects is not considered confidential information under this Code of Ethics.
HILP MEMBERS shall, consistent with the terms and conditions of their real estate licensure and their property management agreement, competently manage the property of clients with due regard for the rights, safety and health of tenants and others lawfully on the premises.
HILP MEMBERS who are employed to maintain or manage a client’s property shall exercise due diligence and make reasonable efforts to protect it against reasonably foreseeable contingencies and losses.
When entering listing contracts, HILP MEMBERS must advise sellers/landlords of:
1) the HILP’s company policies regarding cooperation and the amount(s) of any compensation that will be offered to subagents, buyer/tenant agents, and/or brokers acting in legally recognized non-agency capacities ;
2) the fact that buyer/tenant agents or brokers, even if compensated by listing brokers, or by sellers/landlords may represent the interests of buyers/tenants; and
3) any potential for listing brokers to act as disclosed dual agents, e.g., buyer/tenant agents.
When entering into buyer/tenant agreements, HILP MEMBERS must advise potential clients of:
1) the HILP’s company policies regarding cooperation;
2) the amount of compensation to be paid by the client;
3) the potential for additional or offsetting compensation from other brokers, from the seller or landlord, or from other parties;
4) any potential for the buyer/tenant representative to act as a disclosed dual agent, e.g., listing broker, subagent, landlord’s agent, etc.; and
5) the possibility that sellers or sellers’ representatives may not treat the existence, terms, or conditions of offers as confidential unless confidentiality is required by law, regulation, or by any confidentiality agreement between the parties.
Fees for preparing appraisals or other valuations shall not be contingent upon the amount of the appraisal or valuation.
HILP MEMBERS, in response to inquiries from buyers or cooperating brokers shall, with the sellers’ approval, disclose the existence of offers on the property. Where disclosure is authorized, HILP MEMBERS shall also disclose, if asked, whether offers were obtained by the listing licensee, another licensee in the listing firm, or by a cooperating broker.
HILP MEMBERS shall not access or use, or permit or enable others to access or use, listed or managed property on terms or conditions other than those authorized by the owner or seller.
HILP MEMBERS shall avoid exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or the transaction. HILP MEMBERS shall not, however, be obligated to discover latent defects in the property, to advise on matters outside the scope of their real estate license, or to disclose facts which are confidential under the scope of agency or non-agency relationships as defined by state law.
HILP MEMBERS shall only be obligated to discover and disclose adverse factors reasonably apparent to someone with expertise in those areas required by their real estate licensing authority. Article 2 does not impose upon the HILP MEMBER the obligation of expertise in other professional or technical disciplines.
HILP MEMBERS shall not be parties to the naming of a false consideration in any document, unless it be the naming of an obviously nominal consideration.
Factors defined as “non-material” by law or regulation or which are expressly referenced in law or regulation as not being subject to disclosure are considered not “pertinent” for purposes.
HILP MEMBERS shall cooperate with other brokers except when cooperation is not in the client’s best interest. The obligation to cooperate does not include the obligation to share commissions, fees, or to otherwise compensate another broker.
HILP MEMBERS, acting as exclusive agents or brokers of sellers/ landlords, establish the terms and conditions of offers to cooperate. Unless expressly indicated in offers to cooperate, cooperating brokers may not assume that the offer of cooperation includes an offer of compensation. Terms of compensation, if any, shall be ascertained by cooperating brokers before beginning efforts to accept the offer of cooperation.
Any change in compensation offered for cooperative services must be communicated to the other HILP MEMBER prior to the time that HILP submits an offer to purchase/lease the property. After a HILP MEMBER has submitted an offer to purchase or lease property, the listing broker may not attempt to unilaterally modify the offered compensation with respect to that cooperative transaction.
It does not preclude the listing broker and cooperating broker from entering into an agreement to change cooperative compensation.
HILP MEMBERS, acting as listing brokers, have an affirmative obligation to disclose the existence of dual or variable rate commission arrangements (i.e., listings where one amount of commission is payable if the listing broker’s firm is the procuring cause of sale/lease and a different amount of commission is payable if the sale/lease results through the efforts of the seller/landlord or a cooperating broker). The listing broker shall, as soon as practical, disclose the existence of such arrangements to potential cooperating brokers and shall, in response to inquiries from cooperating brokers, disclose the differential that would result in a cooperative transaction or in a sale/lease that results through the efforts of the seller/landlord. If the cooperating broker is a buyer/tenant representative, the buyer/tenant representative must disclose such information to their client before the client makes an offer to purchase or lease.
It is the obligation of subagents to promptly disclose all pertinent facts to the principal’s agent prior to as well as after a purchase or lease agreement is executed.
HILP MEMBERS shall disclose the existence of accepted offers, including offers with unresolved contingencies, to any broker seeking cooperation.
When seeking information from another HILP MEMBER concerning property under a management or listing agreement, HILP MEMBERS shall disclose their HILP status and whether their interest is personal or on behalf of a client and, if on behalf of a client, their relationship with the client.
HILP MEMBERS shall not misrepresent the availability of access to show or inspect a listed property.
HILP MEMBERS shall not provide access to listed property on terms other than those established by the owner or the seller.
The duty to cooperate established in Article 3 relates to the obligation to share information on listed property, and to make property available to other brokers for showing to prospective purchasers/tenants when it is in the best interests of sellers/landlords.
HILP MEMBERS may not refuse to cooperate on the basis of a broker’s race, color, religion, sex, disability, familial status, national origin, sexual orientation, or gender identity.
HILP MEMBERS shall not acquire an interest in or buy or present offers from themselves, any member of their immediate families, their firms or any member thereof, or any entities in which they have any ownership interest, any real property without making their true position known to the owner or the owner’s agent or broker. In selling property they own, or in which they have any interest, HILP MEMBERS shall reveal their ownership or interest in writing to the purchaser or the purchaser’s representative.
For the protection of all parties, the disclosures required by Article 4 shall be in writing and provided by HILP MEMBERS prior to the signing of any contract.
HILP MEMBERS shall not undertake to provide professional services concerning a property or its value where they have a present or contemplated interest unless such interest is specifically disclosed to all affected parties.
HILP MEMBERS shall not accept any commission, rebate, or profit on expenditures made for their client, without the client’s knowledge and consent.
When recommending real estate products or services (e.g., homeowner’s insurance, warranty programs, mortgage financing, title insurance, etc.), HILP MEMBERS shall disclose to the client or customer to whom the recommendation is made any financial benefits or fees, other than real estate referral fees, the HILP MEMBER or HILP’s firm may receive as a direct result of such recommendation.
HILP MEMBERS shall not recommend or suggest to a client or a customer the use of services of another organization or business entity in which they have a direct interest without disclosing such interest at the time of the recommendation or suggestion.
In a transaction, HILP MEMBERS shall not accept compensation from more than one party, even if permitted by law, without disclosure to all parties and the informed consent of the HILP’s client or clients.
HILP MEMBERS shall keep in a special account in an appropriate financial institution, separated from their own funds, monies coming into their possession in trust for other persons, such as escrows, trust funds, clients’ monies, and other like items.
HILP MEMBERS, for the protection of all parties, shall assure whenever possible that all agreements related to real estate transactions including, but not limited to, listing and representation agreements, purchase contracts, and leases are in writing in clear and understandable language expressing the specific terms, conditions, obligations and commitments of the parties. A copy of each agreement shall be furnished to each party to such agreements upon their signing or initialing.
For the protection of all parties, HILP MEMBERS shall use reasonable care to ensure that documents pertaining to the purchase, sale, or lease of real estate are kept current through the use of written extensions or amendments.
When assisting or enabling a client or customer in establishing a contractual relationship (e.g.,
listing and representation agreements, purchase agreements, leases, etc.) electronically, HILP MEMBERS shall make reasonable efforts to explain the nature and disclose the specific terms of the contractual relationship being established prior to it being agreed to by a contracting party.
HILP MEMBERS shall not deny equal professional services to any person for reasons of race, color, religion, sex, disability, familial status, national origin, sexual orientation, or gender identity. HILP MEMBERS shall not be parties to any plan or agreement to discriminate against a person or persons on the basis of race, color, religion, sex, disability, familial status, national origin, sexual orientation, or gender identity.
HILP MEMBERS, in their real estate employment practices, shall not discriminate against any person or persons on the basis of race, color, religion, sex, disability, familial status, national origin, sexual orientation, or gender identity.
When involved in the sale or lease of a residence, HILP MEMBERS shall not volunteer information regarding the racial, religious or ethnic composition of any neighborhood nor shall they engage in any activity which may result in panic selling, however, HILP MEMBERS may provide other demographic information.
When not involved in the sale or lease of a residence, HILP MEMBERS may provide demographic information related to a property, transaction or professional assignment to a party if such demographic information is (a) deemed by the HILP to be needed to assist with or complete, in a manner consistent with Article 10, a real estate transaction or professional assignment and (b) is obtained or derived from a recognized, reliable, independent, and impartial source. The source of such information and any additions, deletions, modifications, interpretations, or other changes shall be disclosed in reasonable detail.
HILP MEMBERS shall not print, display or circulate any statement or advertisement with respect to selling or renting of a property that indicates any preference, limitations or discrimination based on race, color, religion, sex, disability, familial status, national origin, sexual orientation, or gender identity.
As used in Article 10 “real estate employment practices” relates to employees and independent contractors providing real estate-related services and the administrative and clerical staff directly supporting those individuals.
HILP MEMBERS must not use harassing speech, hate speech, epithets, or slurs based on race, color, religion, sex, disability, familial status, national origin, sexual orientation, or gender identity.
The services which HILP MEMBERS provide to their clients and customers shall conform to the standards of practice and competence which are reasonably expected in the specific real estate disciplines in which they engage; specifically, residential real estate brokerage, real property management, commercial and industrial real estate brokerage, land brokerage, real estate appraisal, real estate counseling, real estate syndication, real estate auction, and international real estate.
HILP MEMBERS shall not undertake to provide specialized professional services concerning a type of
property or service that is outside their field of competence unless they engage the assistance of one who is competent on such types of property or service, or unless the facts are fully disclosed to the client. Any persons engaged to provide such assistance shall be so identified to the client and their contribution to the assignment should be set forth.
When HILP MEMBERS prepare opinions of real property value or price they must:
1) be knowledgeable about the type of property being valued,
2) have access to the information and resources necessary to formulate an accurate opinion, and
3) be familiar with the area where the subject property is located
unless lack of any of these is disclosed to the party requesting the opinion in advance.
When an opinion of value or price is prepared other than in pursuit of a listing or to assist a potential purchaser in formulating a purchase offer, the opinion shall include the following unless the party requesting the opinion requires a specific type of report or different data set:
1) identification of the subject property
2) date prepared
3) defined value or price
4) limiting conditions, including statements of purpose(s) and intended user(s)
5) any present or contemplated interest, including the possibility of representing the seller/landlord or buyers/tenants
6) basis for the opinion, including applicable market data
7) if the opinion is not an appraisal, a statement to that effect
8) disclosure of whether and when a physical inspection of the property’s exterior was conducted
9) disclosure of whether and when a physical inspection of the property’s interior was conducted
10) disclosure of whether the HILP® has any conflicts of interest.
The obligations of the Code of Ethics in respect of real estate disciplines other than appraisal shall be interpreted and applied in accordance with the standards of competence and practice which clients and the public reasonably require to protect their rights and interests considering the complexity of the transaction, the availability of expert assistance, and, where the HILP MEMRER is an agent or subagent, the obligations of a fiduciary.
When HILP MEMBERS provide consultive services to clients which involve advice or counsel for a fee (not a commission), such advice shall be rendered in an objective manner and the fee shall not be contingent on the substance of the advice or counsel given. If brokerage or transaction services are to be provided in addition to consultive services, a separate compensation may be paid with prior agreement between the client and HILP.
The competency required by Article 11 relates to services contracted for between HILP MEMBERS and their clients or customers; the duties expressly imposed by the Code of Ethics; and the duties imposed by law or regulation.
HILP MEMBERS shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing, and other representations. HILP MEMBERS shall ensure that their status as real estate professionals is readily apparent in their advertising, marketing, and other representations, and that the recipients of all real estate communications are, or have been, notified that those communications are from a real estate professional
HILP MEMBERS must not represent that their brokerage services to a client or customer are free or available at no cost to their clients, unless HILP will receive no financial compensation from any source for those services.
The offering of premiums, prizes, merchandise discounts or other inducements to list, sell, purchase, or lease is not, in itself, unethical even if receipt of the benefit is contingent on listing, selling, purchasing, or leasing through the HILP MEMBER making the offer. However, HILP MEMBERS must exercise care and candor in any such advertising or other public or private representations so that any party interested in receiving or otherwise benefiting from the HILP’s offer will have clear, thorough, advance understanding of all the terms and conditions of the offer. The offering of any inducements to do business is subject to the limitations and restrictions of state law and the ethical obligations established by any applicable Standard of Practice.
HILP MEMBERS shall not offer for sale/lease or advertise property without authority. When acting as listing brokers or as subagents, HILP MEMBERS shall not quote a price different from that agreed upon with the seller/landlord.
HILP MEMBERS shall not advertise nor permit any person employed by or affiliated with them to advertise real estate services or listed property in any medium (e.g., electronically, print, radio, television, etc.) without disclosing the name of that HILP’s firm in a reasonable and readily apparent manner either in the advertisement or in electronic advertising via a link to a display with all required disclosures.
HILP MEMBERS, when advertising unlisted real property for sale/lease in which they have an ownership interest, shall disclose their status as both owners/landlords and as HILP MEMBERS or real estate licensees.
Only HILP MEMBERS who participated in the transaction as the listing broker or cooperating broker (selling broker) may claim to have “sold” the property. Prior to closing, a cooperating broker may post a “sold” sign only with the consent of the listing broker.
The obligation to present a true picture in representations to the public includes information presented, provided, or displayed on HILP MEMBERS’ websites. HILP MEMBERS shall use reasonable efforts to ensure that information on their websites is current. When it becomes apparent that information on a HILP’s website is no longer current or accurate, HILP MEMBERS shall promptly take corrective action.
HILP’S firm websites shall disclose the firm’s name and state(s) of licensure in a reasonable and readily apparent manner.
Websites of HILP MEMBERS and non-member licensees affiliated with a HILP’s firm shall disclose the firm’s name and that HILP’s or non-member licensee’s state(s) of licensure in a reasonable and readily apparent manner.
HILP MEMBERS obligation to present a true picture in their advertising and representations to the public includes Internet content, images, and the URLs and domain names they use, and prohibits HILP MEMBERS from:
1) engaging in deceptive or unauthorized framing of real estate brokerage websites;
2) manipulating (e.g., presenting content developed by others) listing and other content in any way that produces a deceptive or misleading result;
3) deceptively using metatags, keywords or other devices/methods to direct, drive, or divert Internet traffic; or
4) presenting content developed by others without either attribution or without permission; or
5) otherwise misleading consumers, including use of misleading images.
HILP MEMBERS intending to share or sell consumer information gathered via the Internet shall disclose that possibility in a reasonable and readily apparent manner.
HILP MEMBERS shall not:
1) use URLs or domain names that present less than a true picture, or
2) register URLs or domain names which, if used, would present less than a true picture
The obligation to present a true picture in advertising, marketing, and representations allows HILP MEMBERS to use and display only professional designations, certifications, and other credentials to which they are legitimately entitled.
HILP MEMBERS shall not engage in activities that constitute the unauthorized practice of law and shall recommend that legal counsel be obtained when the interest of any party to the transaction requires it.
If charged with unethical practice or asked to present evidence or to cooperate in any other way, in any professional standards proceeding or investigation, HILP MEMBERS shall place all pertinent facts before the proper tribunals of the Member Board or affiliated institute, society, or council in which membership is held and shall take no action to disrupt or obstruct such processes.
HILP MEMBERS shall not be subject to disciplinary proceedings in more than one Board of HILP MEMBERS or affiliated institute, society, or council in which they hold membership with respect to alleged violations of the Code of Ethics relating to the same transaction or event.
HILP MEMBERS shall not make any unauthorized disclosure or dissemination of the allegations, findings, or decision developed in connection with an ethics hearing or appeal or in connection with an arbitration hearing or procedural review.
HILP MEMBERS shall not obstruct the Board’s investigative or professional standards proceedings by instituting or threatening to institute actions for libel, slander, or defamation against any party to a professional standards proceeding or their witnesses based on the filing of an arbitration request, an ethics complaint, or testimony given before any tribunal.
HILP MEMBERS shall not intentionally impede the Board’s investigative or disciplinary proceedings by filing multiple ethics complaints based on the same event or transaction.
HILP MEMBERS shall not knowingly or recklessly make false or misleading statements about other real estate professionals, their businesses, or their business practices.
HILP MEMBERS shall not knowingly or recklessly file false or unfounded ethics complaints.
The obligation to refrain from making false or misleading statements about other real estate professionals, their businesses, and their business practices includes the duty to not knowingly or recklessly publish, repeat, retransmit, or republish false or misleading statements made by others. This duty applies whether false or misleading statements are repeated in person, in writing, by technological means (e.g., the Internet), or by any other means.
The obligation to refrain from making false or misleading statements about other real estate professionals, their businesses, and their business practices includes the duty to publish a clarification about or to remove statements made by others on electronic media the HILP MEMBER controls once the HILP MEMBER knows the statement is false or misleading.
HILP MEMBERS shall not engage in any practice or take any action inconsistent with exclusive representation or exclusive brokerage relationship agreements that other HILP MEMBERS have with clients.
Article 16 is not intended to prohibit aggressive or innovative business practices which are otherwise ethical and does not prohibit disagreements with other HILP MEMBERS involving commission, fees, compensation or other forms of payment or expenses.
Article 16 does not preclude HILP MEMBERS from making general announcements to prospects describing their services and the terms of their availability even though some recipients may have entered into agency agreements or other exclusive relationships with another HILP MEMBER. A general telephone canvass, general mailing or distribution addressed to all prospects in a given geographical area or in a given profession, business, club, or organization, or other classification or group is deemed “general” for purposes of this standard.
Article 16 is intended to recognize as unethical two basic types of solicitations:
First, telephone or personal solicitations of property owners who have been identified by a real estate sign, multiple listing compilation, or other information service as having exclusively listed their property with another HILP MEMBER and
Second, mail or other forms of written solicitations of prospects whose properties are exclusively listed with another HILP MEMBER when such solicitations are not part of a general mailing but are directed specifically to property owners identified through compilations of current listings, “for sale” or “for rent” signs, or other sources of information required by Article 3 and Multiple Listing Service rules to be made available to other HILP MEMBERS under offers of subagency or cooperation.
Article 16 does not preclude HILP MEMBERS from contacting the client of another broker for the purpose of offering to provide, or entering into a contract to provide, a different type of real estate service unrelated to the type of service currently being provided (e.g., property management as opposed to brokerage) or from offering the same type of service for property not subject to other
brokers’ exclusive agreements. However, information received through a Multiple Listing Service or any other offer of cooperation may not be used to target clients of other HILP MEMBERS to whom such offers to provide services may be made.
HILP MEMBERS shall not solicit a listing which is currently listed exclusively with another broker. However, if the listing broker, when asked by the HILP MEMBER, refuses to disclose the expiration date and nature of such listing, i.e., an exclusive right to sell, an exclusive agency, open listing, or other form of contractual agreement between the listing broker and the client, the HILP MEMBER may contact the owner to secure such information and may discuss the terms upon which the HILP MEMBER might take a future listing or, alternatively, may take a listing to become effective upon expiration of any existing exclusive listing.
HILP MEMBERS shall not solicit buyer/tenant agreements from buyers/ tenants who are subject to exclusive buyer/tenant agreements. However, if asked by a HILP MEMBER, the broker refuses to disclose the expiration date of the exclusive buyer/tenant agreement, the HILP MEMBER may contact the buyer/tenant to secure such information and may discuss the terms upon which the HILP MEMBER might enter into a future buyer/tenant agreement or, alternatively, may enter into a buyer/tenant agreement to become effective upon the expiration of any existing exclusive buyer/tenant agreement.
When HILP MEMBERS are contacted by the client of another HILP MEMBER regarding the creation of an exclusive relationship to provide the same type of service, and HILP MEMBERS have not directly or indirectly initiated such discussions, they may discuss the terms upon which they might enter into a future agreement or, alternatively, may enter into an agreement which becomes effective upon expiration of any existing exclusive agreement.
The fact that a prospect has retained a HILP MEMBER as an exclusive representative or exclusive broker in one or more past transactions does not preclude other HILP MEMBERS from seeking such prospect’s future business.
The fact that an exclusive agreement has been entered into with a HILP MEMBER shall not preclude or inhibit any other HILP MEMBER from entering into a similar agreement after the expiration of the prior agreement.
HILP MEMBERS, prior to entering into a representation agreement, have an affirmative obligation to make reasonable efforts to determine whether the prospect is subject to a current, valid exclusive agreement to provide the same type of real estate service.
HILP MEMBERS, acting as buyer or tenant representatives or brokers, shall disclose that relationship to the seller/landlord’s representative or broker at first contact and shall provide written confirmation of that disclosure to the seller/landlord’s representative or broker not later than execution of a purchase agreement or lease.
On unlisted property, HILP MEMBERS acting as buyer/tenant representatives or brokers shall disclose that relationship to the seller/landlord at first contact for that buyer/tenant and shall provide written confirmation of such disclosure to the seller/landlord not later than execution of any purchase or lease agreement.
HILP MEMBERS shall make any request for anticipated compensation from the seller/landlord at first contact.
HILP MEMBERS, acting as representatives or brokers of sellers/landlords or as subagents of listing brokers, shall disclose that relationship to buyers/tenants as soon as practicable and shall provide written confirmation of such disclosure to buyers/tenants not later than execution of any purchase or lease agreement.
All dealings concerning property exclusively listed, or with buyer/tenants who are subject to an exclusive agreement shall be carried on with the client’s representative or broker, and not with the client, except with the consent of the client’s representative or broker or except where such dealings are initiated by the client.
Before providing substantive services (such as writing a purchase offer or presenting a CMA) to prospects, HILP MEMBERS shall ask prospects whether they are a party to any exclusive representation agreement. HILP MEMBERS shall not knowingly provide substantive services concerning a prospective transaction to prospects who are parties to exclusive representation agreements, except with the consent of the prospects’ exclusive representatives or at the direction of prospects.
HILP MEMBERS are free to enter into contractual relationships or to negotiate with sellers/landlords, buyers/tenants or others who are not subject to an exclusive agreement but shall not knowingly obligate them to pay more than one commission except with their informed consent
In cooperative transactions HILP MEMBERS shall compensate cooperating HILP MEMBERS (principal brokers) and shall not compensate nor offer to compensate, directly or indirectly, any of the sales licensees employed by or affiliated with other HILP MEMBERS without the prior express knowledge and consent of the cooperating broker.
HILP MEMBERS, acting as subagents or buyer/tenant representatives or brokers, shall not use the terms of an offer to purchase/lease to attempt to modify the listing broker’s offer of compensation to subagents or buyer/tenant representatives or brokers nor make the submission of an executed offer to purchase/lease contingent on the listing broker’s agreement to modify the offer of compensation.
HILP MEMBERS, acting as subagents or as buyer/tenant representatives or brokers, shall not attempt to extend a listing broker’s offer of cooperation and/or compensation to other brokers without the consent of the listing broker.
HILP MEMBERS shall not use information obtained from listing brokers through offers to cooperate made through multiple listing services or through other offers of cooperation to refer listing brokers’ clients to other brokers or to create buyer/tenant relationships with listing brokers’ clients, unless such use is authorized by listing brokers.
Signs giving notice of property for sale, rent, lease, or exchange shall not be placed on property without consent of the seller/landlord.
HILP MEMBERS, prior to or after their relationship with their current firm is terminated, shall not induce clients of their current firm to cancel exclusive contractual agreements between the client and that firm. This does not preclude HILP MEMBERS (principals) from establishing agreements with their associated licensees governing assignability of exclusive agreements.
In the event of contractual disputes or specific non-contractual disputes between HILP MEMBERS (principals) associated with different firms, arising out of their relationship as HILP MEMBERS, the HILP MEMBERS shall mediate the dispute if the Board requires its members to mediate. If the dispute is not resolved through mediation, or if mediation is not required, HILP MEMBERS shall submit the dispute to arbitration in accordance with the policies of the Board rather than litigate the matter.
In the event clients of HILP MEMBERS wish to mediate or arbitrate contractual disputes arising out of real estate transactions, HILP MEMBERS shall mediate or arbitrate those disputes in accordance with
the policies of the Board, provided the clients agree to be bound by any resulting agreement or award.
The obligation to participate in mediation and arbitration contemplated by this Article includes the obligation of HILP MEMBERS (principals) to cause their firms to mediate and arbitrate and be bound by any resulting agreement or award.
The filing of litigation and refusal to withdraw from it by HILP MEMBERS in an arbitrable matter constitutes a refusal to arbitrate
Article 17 does not require HILP MEMBERS to mediate in those circumstances when all parties to the dispute advise the Board in writing that they choose not to mediate through the Board’s facilities. The fact that all parties decline to participate in mediation does not relieve HILP MEMBERS of the duty to arbitrate.
Article 17 does not require HILP MEMBERS to arbitrate in those circumstances when all parties to the dispute advise the Board in writing that they choose not to arbitrate before the Board.
HILP MEMBERS, when acting solely as principals in a real estate transaction, are not obligated to arbitrate disputes with other HILP MEMBERS absent a specific written agreement to the contrary.
Specific non-contractual disputes that are subject to arbitration pursuant to Article 17 are:
1) Where a listing broker has compensated a cooperating broker and another cooperating broker subsequently claims to be the procuring cause of the sale or lease. In such cases the complainant may name the first cooperating broker as respondent and arbitration may proceed without the listing broker being named as a respondent. When arbitration occurs between two (or more) cooperating brokers and where the listing broker is not a party, the amount in dispute and the amount of any potential resulting award is limited to the amount paid to the respondent by the listing broker and any amount credited or paid to a party to the transaction at the direction of the respondent. Alternatively, if the complaint is brought against the listing broker, the listing broker may name the first cooperating broker as a third-party respondent. In either instance the decision of the hearing panel as to procuring cause shall be conclusive with respect to all current or subsequent claims of the parties for compensation arising out of the underlying cooperative transaction.
2) Where a buyer or tenant representative is compensated by the seller or landlord, and not by the listing broker, and the listing broker, as a result, reduces the commission owed by the seller or landlord and, subsequent to such actions, another cooperating broker claims to be the procuring cause of sale or lease. In such cases the complainant may name the first cooperating broker as respondent and arbitration may proceed without the listing broker being named as a respondent. When arbitration occurs between two (or more) cooperating brokers and where the listing broker is not a party, the amount in dispute and the amount of any potential resulting award is limited to the amount paid to the respondent by the seller or landlord and any amount credited or paid to a party to the transaction at the direction of the respondent. Alternatively, if the complaint is brought against the listing broker, the listing broker may name the first cooperating broker as a third-party respondent. In either instance the decision of the hearing panel as to procuring cause shall be conclusive with respect to all current or subsequent claims of the parties for compensation arising out of the underlying cooperative transaction.
3) Where a buyer or tenant representative is compensated by the buyer or tenant and, as a result, the listing broker reduces the commission owed by the seller or landlord and, subsequent to such actions, another cooperating broker claims to be the procuring cause of sale or lease. In such cases the complainant may name the first cooperating broker as respondent and arbitration may proceed without the listing broker being named as a respondent. Alternatively, if the complaint is brought against the listing broker, the listing broker may name the first cooperating broker as a third-party respondent. In either instance the decision of the hearing panel as to procuring cause shall be conclusive with respect to all current or subsequent claims of the parties for compensation arising out of the underlying cooperative transaction.
4) Where two or more listing brokers claim entitlement to compensation pursuant to open listings with a seller or landlord who agrees to participate in arbitration (or who requests arbitration) and who agrees to be bound by the decision. In cases where one of the listing brokers has been compensated by the seller or landlord, the other listing broker, as complainant, may name the first listing broker as respondent and arbitration may proceed between the brokers.
5) Where a buyer or tenant representative is compensated by the seller or landlord, and not by the listing broker, and the listing broker, as a result, reduces the commission owed by the seller or landlord and, subsequent to such actions, claims to be the procuring cause of sale or lease. In such cases arbitration shall be between the listing broker and the buyer or tenant representative and the amount in dispute is limited to the amount of the reduction of commission to which the listing broker agreed.
The obligation to arbitrate established in Article 17 includes disputes between HILP MEMBERS (principals) in different states in instances where, absent an established inter-association arbitration agreement, the HILP MEMBER (principal) requesting arbitration agrees to submit to the jurisdiction of, travel to, participate in, and be bound by any resulting award rendered in arbitration conducted by the respondent(s) HILP MEMBER’s, in instances where the respondent(s) HILP MEMBER’s determines that an arbitrable issue exists.
The reader should be aware of the following policies which have been approved by the Board of Directors of HILP
In filing a charge of an alleged violation of the Code of Ethics by a HILP, the charge must read as an alleged violation of one or more Articles of the Code. Standards of Practice may be cited in support of the charge.
The Standards of Practice serve to clarify the ethical obligations imposed by the various Articles and supplement, and do not substitute for, the Case Interpretations in Interpretations of the Code of Ethics.
Modifications to existing Standards of Practice and additional new Standards of Practice are approved from time to time. Readers are cautioned to ensure that the most recent publications are utilized.