IREAA™ Code of Ethics

1.1

Ethical behavior is based upon the Golden Rule: "Do unto others as you would have them do unto you".

1.2

The opening words to this rule are taken from the requirements imposed on all Members by subsection 6(1) of the Real Estate and Business Brokers Act. The Code of Ethics is a description and amplification by the Council of this obligation.

1.3

Members are expected to keep abreast of the current professional standards.

1.4

The Code of Ethics sets out the minimum requirements that Members are expected to meet.

1.5

This Code of Ethics shall apply to all Members despite any agreement to the contrary.

Fiduciary Duty to Client

2.1

A Member has a fiduciary duty, professionally and at law, to endeavor to protect and promote the interests of the Member's Client to the extent that he or she may ethically or legally do so. This relationship of trust means that the Member never puts the Member's interests above those of the Client. Competence, diligence, full disclosure, obedience, loyalty, confidentiality and complete accounting are included in this duty.

2.2

Except in cases of Consensual Dual Agency, a Member does not act as a mediator between the Member's Client and the other Person involved in the Transaction. Rather, the Member advocates the Member's Client's position according to the Client's instructions.

2.3

A Member should inform a Client about the availability of a listed Property where it is in the interests of the Client regardless of the fee or commission arrangement.

Honest Disclosure to Client

2.4

A Member, in attempting to obtain a listing, should not knowingly misrepresent to the Seller the potential market value of a property. When attempting to enter into a Buyer Agency Agreement, a Member should not knowingly misrepresent to the Buyer the potential purchase price of a Property.

2.5

A Member should fully disclose to the Member's Client, at the earliest practical opportunity, any information that the Member knows or ought to know which could affect the decision to proceed with the transaction. The Member should disclose to the Member's Client the material steps that the Member takes on the Client's behalf.

2.6

A Member's primary duty is to the Member's Client. However, the Member also has a duty to deal fairly with the public, other Members, third parties and the profession as a whole as represented by the Council. The Code of Ethics attempts to indicate how a Member can fulfill both sets of duties.

Fair Dealing with Customers

2.7

A Member, when dealing with a Customer, should not mislead the Customer as to any matters pertaining to the Property or Transaction.

2.8

A Member, when dealing with a Customer, should exercise reasonable care and skill when answering inquiries or giving information so that the answers or information are complete and accurate.

Fair Dealing with Third Parties

2.9

A Member should provide competent, thorough and skilled assistance when dealing with lawyers, mortgage lenders, home inspectors, surveyors and other third parties that may be involved in the Transaction, and should cooperate with those persons, to facilitate the successful completion of any Transaction, to the extent practical without breaching the Member's duties to the Member's Client.

2.10

No Member should make a practice of Steering any Clients or Customers to a particular person for other services that may be required in connection with any Transaction.

2.11

All of the other Guiding Principles expand upon aspects of this primary duty.

3.1

A Member is strongly advised to obtain a written acknowledgement of the disclosure of the Member's role from the Person. Requesting a written acknowledgement brings home to the Person the seriousness of the disclosure. The written acknowledgement also provides evidence that the necessary disclosure has been made.

3.2

Disclosure of a Member's role includes identifying whether he or she is representing the Seller, the Buyer, or some other party to the Transaction. The Persons involved in the Transaction, including their representatives, should be clearly informed of the role of the Member in the Transaction.

Disclosure of Nature of the Service

3.3

Disclosure of the "nature of service" includes explaining that the Member's primary responsibility is to protect and promote the interests of the Member's Client, but that this primary obligation does not relieve the Member of the responsibility to deal fairly with all Parties to the Transaction.

Timing and Method of Disclosure

3.4

The disclosure in this Rule should be made at the earliest practical opportunity in the relationship, but not later than when the Member Accepts an Agency, even if the written acknowledgement is obtained later in the relationship. A Person may disclose information to a Member that he or she might otherwise have kept confidential if the Person knew the Member's role, or, conversely, a Person may withhold information from the Member that he or she would otherwise have told the Member if the Person knew the Member's role.

3.5

The disclosure of role in this Rule should be included in writing in any Offer between the parties where the Member is representing a Party.

4.1

A Representation Agreement should specify the role and nature of services of the Member, the duration of the Agreement, the compensation of the Member and the other expectations and obligations of the Member and the Client.

4.2

A Member should put any representation or promises in writing including a representation or promise to permit the early cancellation of a listing or a representation agreement or a representation or promise to rebate or reduce a commission in some circumstances. Section24 of the Real Estate and Business Brokers Act has special requirements for representations or promises to resell any real estate, Purchase or Sell real estate, to obtain a mortgage, lease or loan and some similar Transactions.

4.3

A Representation Agreement should not be for a period of more than 6 months unless the Client specifically gives an Informed Consent to a longer period in writing and the Client initials that provision.

4.4

The requirements of this Rule are in addition to the requirements in Rule 3.

4.5

Section 35 of the Real Estate and Business Brokers Act has specific provisions relating to Listing Agreements.

8.1

Confidential information includes information about a Client's assets, liabilities, personal income, personal expenses, motivations to Buy or Sell, and previous Offers which are not part of a public record.

8.2

A Member should not disclose or use confidential information for the Member's advantage or the advantage of a third party without the Client's consent.

8.3

A Member should ensure that a Client's consent to disclose or use confidential information is specific, is an Informed Consent and is made after full disclosure by the Member of the nature of the proposed disclosure of information or the use to which the information will be put.

10.1

A Member should be honest and candid when advising Clients.

10.2

A Member should not participate in any arrangement to conceal or withhold any facts pertaining to a Property.

21.1

A Member may communicate factual, accurate and verifiable information that a reasonable Person would consider relevant in the choice of a Member or in Buying or Selling Property.

21.2

A Member should not communicate information that is false, misleading or deceptive, by the inclusion or omission of any information.

21.3

A Member should not use a Client's name or likeness, or the address of a Client's Property, in any advertising or promotional material, without the express written consent of the Client.

21.4

A Member should not advertise the price or terms of an Agreement about a Property that was bought or sold through the services of the Member without written consent from the Member's Client.

21.5

With respect to the use of the word "Specialist", a Member may only advertise as a "Commercial Specialist" or a "Residential Specialist" if a Member has satisfied the criteria established by the Council to be such a Specialist.  Otherwise a Member may be put to the test of proving that any other term, title or designation that implies that the Member is a specialist or expert is not false, misleading or deceptive advertising.  A Member should not use a term, title, or designation implying that the Member is a specialist or an expert in the profession or a term, title or designation restricted by the Council, unless the Member satisfies the criteria established by the Council for its use.

21.6

Sections 28 and 47 of the Real Estate and Business Brokers Act also apply to advertising.

23.1

A Member should always obey the law. However, the Council is most concerned about breaches of the law that reflect on the Member's ability to be an ethical and competent practitioner or which reflect upon the profession as a whole. Some infractions, however, do not reflect on the Member's ability to be a good practitioner and do not reflect on the profession as a whole. For example, it would be rare that a parking or speeding infraction would be relevant to a Member's fitness to practice. However, laws pertaining to real estate are usually relevant to a Member's fitness to practice. Similarly, laws unrelated to real estate but that relate to integrity and trust are generally relevant to a Member's fitness to practice (eg., a fraud conviction would almost always be of significant concern to the Council).

23.2

A Member should practice in strict accordance with the Real Estate and Business Brokers Act and its regulations, the by-laws made by the Council and any terms or conditions on the Member's registration.

23.3

A Member should not knowingly, or where he or she ought to have known, permit any property in the Member's charge to be used for an unlawful purpose.

23.4

A Member should not sign an Agreement on behalf of a Client unless lawfully authorized to do so.  Section 23 of the Real Estate and Business Brokers Act also applies here.

42.1

A Member should provide timely service to Clients and Customers and should respond appropriately to all communications with any participant to a Transaction.

42.2

When giving advice or an opinion, the Member should give Clients a competent opinion based on knowledge of the relevant facts, an adequate consideration of the applicable law, and the Member's own experience and expertise.

42.3

A Member should only delegate or assign tasks to unregistered staff or assistants that are appropriate for an unregistered Person to perform.

42.4

A Member should not delegate or assign tasks to unregistered staff or assistants that constitute trading in Property including but not limited to being on site at an open house, door to door or telephone solicitation, showing Properties, or participating in an Offer or a listing presentation.

42.5

A Member should supervise the staff or assistants to whom the Member delegates or assigns a task sufficient to ensure that the task is performed appropriately. The supervising Member should be responsible for all services rendered and the Member should ensure that a registered Person retains the direct relationship with the Client. The tasks delegated or assigned to unregistered staff or assistants should be done under the direct supervision of the Member.

46.1

A Member should only act on the authority of the Member's Client. Authority can be written, verbal or implied. A Member should obtain written authority whenever practical.

46.2

A Member should not practice when impaired, by alcohol, drugs or any other substance.

46.3

A Member's conduct should be professional with other Members or outside professional advisers.

46.4

A Member should not directly or indirectly benefit from the practice of the profession while the Member's registration is suspended, unless the Member first adequately discloses the nature of the benefit to the Council and obtains the prior written consent of the Council or a Committee of the Council.

46.5

A Member should not permit or assist a Member whose registration has been suspended or revoked or whose registration the Registrar has refused to renew from directly or indirectly benefiting from the practice of the profession.

47.1

Conduct unbecoming a Member refers to conduct that occurs outside of the practice of the profession but which brings the profession into disrepute or demonstrates that the Member is not fit to be a Member of the profession. For example, acts of dishonesty are unbecoming a Member even if the conduct does not amount to a crime.