NATIONAL ASSOCIATION OF REAL ESTATE BROKERS INCORPORATED

NATIONAL ASSOCIATION OF REAL ESTATE BROKERS INCORPORATED

PREAMBLE.

Land is the fixed and therefore the controlled element of nature. The Control of land has been one of the major
concerns of man of all times. The Realtist recognizes that he/she is a person through whom transfers of
ownership and control are made and therefore diligently prepares him/herself to service such transfers with
competence and integrity and to protect and promote the best interests of his/her client.

The Realtist has a moral obligation to deal fairly and honestly with all parties to a transaction and to conduct
him/herself and his/her business in such a manner as to be a credit to his/her profession.

To protect the public against unethical, improper or fraudulent practices by the affixing of the term or symbol
“Realtist” to advertising matter, stationery, signboards, stock certificates, bonds, mortgages, and other
instruments or other material used by or in connection with the real estate business, and to educate the general
public to deal only with those persons who have agreed to observe the standards maintained by the National
Association of Real Estate Brokers,

Incorporated.

To this end, the Realtist accepts the Code of Ethics set forth herein and pledges to observe it in all of his/her
business transactions.

MISSION.

National Association of Real Estate Brokers, Inc. is a trade association whose mission is to enhance the
economic improvement of its members and the minority community it serves.

CODE OF ETHICS PART 1 RELATIONS TO THE PUBLIC.

1. A Realtist is never relieved of the responsibility to observe fully this Code of Ethics.

2. A Realtist shall not discriminate against any person because of Race, Color, Religion, Sex, National Origin,
Disability, Familial Status or Sexual Orientation:

• In the sale or rental of real property.

• In advertising the sale or rental of real property.

• In the financing of real property.

• In the provision of professional services.

A Realtist shall not be instrumental in establishing, reinforcing or extending any agreement or provision that
restricts or limits the use or occupancy of real property to any person or group of persons on the basis of race,
color, religion, sex, national origin, disability, familial status or sexual orientation.

3. It is the duty of a Realtist to protect the public against misrepresentations, unethical practices or fraud in real
estate transactions, and to offer all properties listed with him/her solely on merit and without exaggeration,
concealment, deception or misleading information.

4. Before offering a property for sale or rent, a Realtist shall:

(a) Secure written authorization of the owner of his/her authorized agent.

(b) Furnish a copy of the authorization to each person who signed it.

(c) Fully inform him/herself of the pertinent facts concerning the property.

5. A Realtist should always offer property at the price currently set forth in the listing agreement.

6. To protect the public against unethical, improper or fraudulent practices by the affixing of the term or symbol
“Realtist” to advertising matter, stationery, signboards, stock certificates, bonds, mortgages, and other
instruments or other material used by or in connection with the real estate business and to educate the general
public to deal only with those persons who have agreed to observe the standards maintained by the National
Association of Real Estate Brokers, Incorporated, whose members are commonly referred to as Realtists.

7. A Realtist shall not engage in activities that constitute the unauthorized practice of law. He/she should advise
that legal counsel be obtained, wherever the interest of any party to the transaction requires it.

8. The Realtist shall inform all parties to a transaction of his/her own position or pecuniary interest in the
transaction and shall not demand or accept a commission from both parties except with their knowledge and
consent in writing and signed by all parties.

9. If the Realtist has any personal interest in the ownership of a property this shall be disclosed to all parties at
the inception of the Realtist’s business dealings with the parties.

10. The Realtist shall see that all contracts and agreements for the ownership, use and/or occupancy of real
properties shall be in writing and signed by all parties, or their lawfully authorized agents

11. The Realtist shall keep in a special escrow account in an appropriate financial institution all monies
belonging to others, which are placed in trust, in his/her possession. He/she shall not co-mingle such monies
with his/her own funds.

CODE OF ETHICS PART II RELATION TO CLIENT.

1. When a Realtist has accepted a listing on a property, he/she shall give an honest and comprehensive
valuation of its fair market value to the owner.

2. In all real estate transactions, the Realtist shall always be fair to all parties to the transaction while promoting
the interest of his/her client and maintaining the proper professional relationship.

3. The Realtist shall not buy for him/herself property listed with him/her for sale, nor purchase an interest
therein, without stating the facts to his/her client in writing and prior to such purchase.

4. The Realtist, when under contract in the management of property, shall not demand and receive
commissions, rebates and/or profits on expenditures made on behalf of his/her client without that client’s prior
written authority.

5. The written exclusive listing of property should be encouraged by all Realtists as a means of preventing
misunderstandings and assuring the best service to the owner, unless this is contrary to the best interest of the
owner. The acceptance of such listing creates the obligation of giving skilled and conscientious service in the
transactions. When a Realtist is unable to render such service through his/her own office or with the aid of
fellow Realists, he/she should inform all concerned parties, cancel and return such listing.

6. In all matters of appraisals, the Realtist should give a written opinion. He/she is therefore entitled to recover
a fee for such service from the requesting party, as it is a matter of his/her professional service. The opinion,
whether on appraisal or real estate problem shall be thoroughly considered and without any personal interest in
the result of a possible sale or lease. Possible employment should not affect the amount of appraisal or honesty
of opinion whose members are commonly referred to as Realtists.

CODE OF ETHICS PART III PROFESSIONAL RELATIONS.

1. The Realtist should always be loyal to his/her local Board of Real Estate Brokers and active in its work. The
fellowship of his/her associates and the mutual sharing of experiences are always assets to his/her own
business.

2. The Realtist should so conduct his/her business as to avoid controversies with his/her fellow Realtists, who
are members of the same local Board of Real Estate Brokers. Any such controversies should be submitted in
writing for arbitration in accordance with the regulations of his/her Real Estate Board and not in an action at
law. The decision in such arbitration should be accepted as final and binding.

3. Controversies between Realtists who are not members of the same local board should be submitted for
arbitration to an Arbitration Board consisting of one arbitrator chosen by each Realtist from the Board of Real
Estate Brokers to which he belongs and one other member, or a sufficient number of members to make an odd
number, selected by the arbitrators thus chosen.

4. All employment arrangements between broker and salesmen should be reduced to writing and signed by both
parties. It is particularly important to specify rights of parties, in the event of termination of employment. All
listings acquired by a salesman during his/her tenure of employment with the Broker, shall be the exclusive
property or right of the Employing Broker after such termination.

5. A Realtist should never publicly criticize a fellow Realtist. He/she shall never express an opinion of a
transaction unless expressly requested to do so by one of the principals. His/her opinion then should be
rendered in accordance with strict professional courtesy and integrity.

6. A Realtist shall never seek information about a fellow Realtist’s transactions to use for the purpose of closing
the transaction himself/herself or diverting the client to another property.

7. When a cooperating Realtist accepts a listing from another Broker, the agency of the Broker who offers the
listing should be respected until it has expired and the property has come to the attention of the cooperating
Realtist from a different source, or until the owner, without solicitation, offers to list with the cooperating
Realtist; furthermore, such a listing should not be passed onto a third Broker without the consent of the listing
Broker.

8. Negotiations concerning property, which is listed with one Realtist exclusively, should be carried on with the
listing Broker, not with the owner.

9. A Realtist shall not solicit the services of any employee in the organization of a fellow Realtist without the
express written consent of the employer.

10. A Realtist shall not place a sign on any property offering it for sale or rent without the written consent of
the owner or his/her authorized agent.

11. All local boards or affiliates shall hear all complaints involved in their jurisdiction. Any decision made may
be appealed through the Regional Vice President to the Board of Directors of the National Association of Real
Estate Brokers, Incorporated for final resolution through the grievance and arbitration procedure. All
complaints against a member of NAREB, which have not been addressed at the local level by local board or
affiliate organizations, shall be submitted in writing to the Board of Directors. This procedure shall comply
with the arbitration provisions as set forth under Robert’s Rules of Order.

12. In the event that a Realtist is asked to present evidence in any charges of violation of this Code of Ethics or
in other disciplinary investigation, he/she shall be accorded an opportunity to present all pertinent information.

ARTICLE I NAME.

The name of the organization shall be: National Association of Real Estate Brokers, Incorporated. Said
organization is currently incorporated under the laws of the State of Michigan.

ARTICLE II PURPOSES.

The purposes of the National Association shall be:

Section 1. To unite those engaged in the recognized branches of the real estate industry including brokerage,
management, mortgage financing, appraising, land development and home building, and allied fields in the
United States of America and other foreign countries and territories; for the purpose exerting effectively a
combined influence upon matters affecting real estate interests:

Section 2. To enable its members to transact their business in a more professional manner, by the adoption of
such rules and regulations as they may deem proper;

Section 3. To promote and maintain high standards of conduct in the transaction of the real estate business;

Section 4. To formulate and enforce a code of ethics for all Realtist members;

Section 5. To license its members the right to use the name of the National Association of Real Estate Brokers,
Incorporated, and/or the term or symbol “Realtist.” Realtist is hereby deemed as designating a person engaged
in the real estate industry who is a recognized and certified member of the National Association of Real Estate
Brokers, Incorporated, and is subject to its rules and regulation, observes its standards of conduct, and is
entitled to its benefits; and

Section 6. To protect the public against unethical, improper or fraudulent practices by the affixing of the term
of symbol “Realtist” to advertising matter, stationary, signboards, stock certificates, bonds, mortgages. and
other instruments or other material used by or in connection with the real estate business, and to educate the
general public to deal only with those persons who have agreed to observe the standards maintained by the
National Association of Real Estate Brokers, Incorporated, whose members are commonly referred to as
Realtists;

MEMBERSHIP.

Section 1(a). The classes of the National Association of Real Estate Brokers, Incorporated shall consist of:

1. Member Boards

2. Local Board Member

3. Individual Broker Member

4. Associate Members

5. Allied Associate Members

6. Individual Members

7. Allied Members

8. Honorary Members

9. Subscribers

10. Corporate Members

11. Life Members

Section l (b). Classifications:

1. Member Board shall consist of local boards of Rea1 Estate Brokers, which shall include city, county, or
inter-county boards and state associations of Real Estate Brokers.

2. Local Board Member shall be persons who are certified by a local board as eligible for membership in the
National Association of Real Estate Brokers, Incorporated.

3. Individual Broker Member shall be a licensed broker who is certified by a local board or by individual
membership approved by the Board of Directors and shall have one (1) full vote in all annual meetings.

4. Associate Member shall be those individuals who hold a license under any member Real Estate Broker as a
salesperson and shall have one-half (1/2) vote in all annual meetings.

5. Allied Associate Members shall be those individuals who hold a license under any non-member Real Estate
Broker as a salesperson and shall have one-half (1/2) vote in all annual meetings.

6. Individual Members shall be those who are elected to direct membership by the Board of Directors. The
Board of Directors of the National Association of Real Estate Brokers, Incorporated, may elect individuals of
any classification who are not within the territory of a local or state association. They shall hold and exercise
their membership until six (6) months after the acceptance by the Board of Directors of an application of a
Member Board of State Association within the same territory. Such membership shall be designated
“INDIVIDUAL MEMBER” subject to any classification determined by the Board of Directors. Such
membership dues shall be paid directly to the Secretary and the member shall be entitled to the same voting
privileges as applies to his or her classification and shall be eligible to hold office.

7. Allied Members shall be those individuals, associations, organizations, co- partnerships and corporations
engaged in business allied to real estate, and shall include such persons, associations, co-partnerships and
corporations as mortgage bankers, architects, building superintendents, property managers, public housing
managers, rental agencies, interior decorators, household appliances, and furniture dealers, public officers, city,
state and federal housing officials and faculties of trade schools and teachers of architectural business courses
and such other technicians as may be related to the development of the housing program. Allied members shall
have one-quarter (1/4) vote in all annual meetings.

8. Honorary Members may be nominated and accepted by the Board of Directors, and who shall have no voting
power. (Refer to Honorary Officers or Members. Section 1. of By-Laws.)

9. Subscribers include the general public and past clients of NAREB members who have either bought or sold
properties. The subscription would be set by the NAREB member, the price of which is to be set by the general
membership. The subscriber will not be bound by the NAREB Code of Ethics, and thus, has no voting power,
and shall not use the term Realtist.

10. Corporate Members shall be those individual, associations, organizations. co-partnerships and corporations
not engaged in business allied to real estate. Corporate members shall have no voting power.

11. Life Members shall be determined by the Board of Directors and shall be granted to members who have
rendered distinguished service to the National Association of Real Estate Brokers, Incorporated. Voting rights
of Life members shall vary according to membership designation.