NAEBA Standards of Practice
NAEBA members must adhere to the highest legal and
ethical standards of practice.
To learn what you can expect from a NAEBA member when
he or she represents you in your real estate transaction, please
read the following:
STANDARDS OF PRACTICE
PREAMBLE
The National Association of Exclusive Buyer Agents
is an independent alliance of real estate professionals who provide
client-level services and whose real estate companies do not accept
seller-property listings. We, the members of this Association, set
forth the following principles as the minimum professional standards
which will guide us in serving our Buyer-Clients. An Exclusive Buyer
Agency relationship requires that we operate according to these
fundamental commitments. The essence of Exclusive Buyer Agency practice
is undivided loyalty to our Buyer-Clients. We recognize that it
is our duty as real estate professionals to serve our clients with
fidelity to these Standards of Practice. We also pledge to adhere
to the Code of Ethics established by this Association.
A. SERVICES PROVIDED IN
THE INITIAL COUNSELING INTERVIEW PHASE
Standard A(1): A Buyer Agent will disclose
that he/she is a Buyer Agent and define his/her agency relationship
to a prospective Buyer-Client. A Buyer Agent will explain how different
agency relationships may affect the level and type of service a
Buyer-Client may receive from a real estate agent.
Standard A(2): Before entering into an agreement
with a Buyer-Client, a Buyer Agent will determine if any conflict
of interest may exist on his/her own part or that of a Buyer-Client.
If a conflict should occur, a Buyer Agent should determine that
a conflict does exist, that conflict should be disclosed in full
which would require the conflict to be described in writing and
require the buyer signature and informed consent. If informed
consent can not be acquired the EBA will be precluded from
representing this Buyer-Client and Buyer, who should have the option
of seeking representation elsewhere.
Standard A(3): A Buyer Agent will provide
a copy of these professional Standards and answer any questions
a Buyer-Client may have about them upon request of Buyer-Client.
Standard A(4): Taking into consideration
market conditions and other factors, a Buyer Agent will make every
effort to enter into a written Agency Agreement with his/her
Buyer-Client. The agreement will include beginning and ending dates,
the service fee structure and payment method, and the responsibilities
of both parties.
Standard A(5): A Buyer Agent will make him/herself
available to his/her Buyer-Client in a timely manner.
Standard A(6): A Buyer Agent will pledge absolute
confidentiality to a Buyer-Client when representing him/her, thereby
protecting that Buyer-Client's ability to negotiate all aspects
of the transaction.
Standard A(7): A Buyer Agent will counsel a
Buyer-Client regarding his/her financial qualifications and will
assist that Buyer-Client in seeking and working with mortgage lenders.
A Buyer Agent will not steer his/her Buyer-Client to any one lender
but instead will assist him/her in evaluating interest rates and
closing costs.
B. SERVICES PROVIDED IN THE
GENERAL PROPERTY SEARCH PHASE
Standard B(1): A Buyer Agent will discuss
objectives and preferences in property styles, age, floor plans,
and so forth with a Buyer-Client, then develop from this information
a target property profile for him/her.
Standard B(2): Based upon the target property
profile, a Buyer Agent and his/her Buyer-Client will determine
the appropriate level of property preview services to be provided,
if any are to be provided.
Standard B(3): With a Buyer-Client's target
property profile in mind, a Buyer Agent will search the real estate
market, including properties for sale by owners, Bank owned, repossessed,
and builders to the best of their ability and as needed,
to locate properties to show that Buyer-Client.
C. SERVICES PROVIDED IN THE
PROPERTY SELECTION/CONTRACT OFFER PHASE
Standard C(1): A Buyer Agent will discuss and
evaluate the properties viewed with his/her Buyer-Client, comparing
each property shown with the target property profile.
Standard C(2): Before preparing an offer to
purchase, a Buyer Agent will inform a Buyer-Client about any defects
or problems he/she has observed or in any way discovered regarding
the target property.
Standard C(3): Before preparing a contract
offer on behalf of his/her Buyer-Client, a Buyer Agent will prepare
a comparative market analysis, including explanations and documentation,
to determine the target property's market value. A Buyer Agent
will not prepare an offer to purchase a property he/she has not
seen or has substantial knowledge of.
Standard C(4): Before a Buyer-Client signs
an offer to purchase, a Buyer Agent will provide that Buyer-Client
with an estimate of closing costs and, whenever possible, with the
truth-in-lending estimate provided by the mortgage company.
Standard C(5): A Buyer Agent will counsel his/her
Buyer-Client and explain the choices available in completing a real
estate contract. This real estate counseling is based upon a Buyer
Agent's experience in negotiation and real estate business decisions
and is not legal advice. Legal matters should be identified and
a Buyer-Client advised to seek legal counsel where appropriate.
Standard C(6): Whenever possible, a Buyer
Agent will prepare the contract offer on a form which has been
designed to protect a Buyer-Client's interest or a contract which
can be amended to provide the same protection. A Buyer Agent will
provide proper disclosures regarding agency representation and
other matters as required by law.
Standard C(7): A Buyer Agent will develop contract
negotiation strategies with his/her Buyer-Client, establishing pre-set
limits on key points of negotiation when that Buyer-Client wishes
to do so. A Buyer Agent will actively negotiate only on behalf of
his/her Buyer-Client.
Standard C(8): Before submitting a contract
offer to a Seller, a Buyer Agent will counsel his/her Buyer-Client
regarding the time requirements specified in the contract and will
encourage that Buyer-Client to have professional inspectors inspect
the property if the contract is accepted.
D. SERVICES PROVIDED IN THE
ESCROW-TO-CLOSING PHASE
Standard D(1): A Buyer Agent will counsel a
Buyer-Client regarding the types of home inspectors, the suggested
criteria for selecting home inspectors, and the comparative costs
of inspection services. A Buyer-Client will select real estate inspectors.
A Buyer Agent will encourage his/her Buyer-Client to be present
during inspections.
Standard D(2): A Buyer Agent will notify a
Seller or a Seller's Agent in writing of inspectors' findings and
of corrections/repairs mandated by a Buyer-Client. A Buyer Agent
will specify a Buyer-Client's desire to proceed or cancel the purchase
contract whenever such notification is required.
Standard D(3): A Buyer Agent will maintain
contact with a Buyer-Client's title company and mortgage company
to make sure that his/her Buyer-Client's interests are being protected.
Standard D(4): A Buyer Agent will review a
settlement statement with his/her Buyer-Client at or before closing,
if possible.
Standard D(5): A Buyer Agent will accompany
a Buyer-Client on a property walk-through before closing, if possible
or practical.
Standard D(6): A Buyer Agent or someone from
the Buyer Agents company will attend a closing with a Buyer-Client.
A Buyer Agent should be prepared to support his/her Buyer-Client's
position at closing.
Standard D(7): A Buyer Agent will keep records
of transactions for a reasonable period of time and will provide
this information to a Buyer-Client on request.
These Standards of Practice establish obligations
that include all those consistent with the "Common Law of Agency"
and are considered to be client-level, not customer-level, services.
These obligations are, in many instances, higher than those mandated
by law. If there is any case where the law requires a greater obligation
than these Standards of Practice, then the requirements of the law
must be followed. It is the duty of each individual Exclusive Buyer
Agent to make himself or herself aware of the laws which may affect
him or her.
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