The National Association of Exclusive Buyer Agents (NAEBA) announces that it has released a new Code of Ethics and Standards of Practice, rules by which its members must abide. Because NAEBA members only work with buyers and never sellers, the organization is able to make its standards more stringent than other organizations of real estate agents. For example, the NAEBA Code of Ethics states, “A NAEBA member shall provide undivided loyalty to a Buyer-Client and not advance the interests of sellers, themselves, or their real estate company above the interests of the Buyer-Client.” Because other real estate organizations allow their members to work with both buyers and sellers even in the same transaction, they cannot require their members to provide undivided loyalty to home buyers. Other key elements include:
• A NAEBA member shall not accept any compensation, commissions, bonuses, gifts or profit resulting from the transaction not disclosed to his/her Buyer-Client.
• A NAEBA member will protect a Buyer-Client from foreseeable risks and will recommend that a Buyer-Client obtain expert advice when their needs are outside the scope of the NAEBA member’s expertise.
• A NAEBA member shall not knowingly direct a Buyer-Client to any service which is less than what is in the best interest of the client.
• A NAEBA member shall assist in negotiating price and terms with direction from a Buyer-Client.
• A NAEBA member shall disclose information available or reasonably available to them concerning a property which might impact a Buyer-Client’s best interest.
Both the Code of Ethics and the Standards of Practice can be found in their entirety on NAEBA’s website, www.naeba.org. The Code of Ethics can be found at www.naeba.org/naeba-code-ethics. The Standards of Practice can be found at www.naeba.org/standards.