(standards and rules for the relations between the Real Property Agencies – members of the National Real Property Organization (NRPO)

NRPO, acting in the capacity of an independent branch organization, consolidates Bulgarian companies which have as objects real property transactions, on the grounds of their willingness to establish and maintain fair competition and loyal relations between themselves within a market economy while keeping the principles of ethics in their professional approach and in the branch specialization.

These interests rest responsibilities upon each professionally committed intermediary in the real property business, which exceed the ordinary trade relations.

NRPO members accept it as their professional duty that they are responsible to the Law, the Public and the Client.

By accepting the standards and rules for relations laid down in the present Code of Ethics, NRPO members facilitate the administrative bodies while seeking to eliminate all and any actions which impair and discredit the branch authority and professionalism.

The established under NRPO Commission on Professional Ethics (CPE) has the necessary experience and authority to facilitate the pre-court settlement of arisen arguments.

I. GENERAL PROVISIONS

1. The intermediation real property agencies, which are NRPO members, are obligated:

1.1. To observe the Articles of Association, the Code of Ethics and the NRPO decisions.

1.2. To observe the approved ethical rules and standards in their professional activity.

1.3. To provide assistance and information to the Managing Board of NRPO and CPE towards the implementation of their tasks and functions.

1.4. To provide for the correct and loyal attitude to their counterparts and not to allow the usage of political influence or pressure towards achieving economic interests by certain persons.

1.5. To notify of any change in their legal or address registration within two weeks of the occurrence of such a change.

1.6. To settle their labour relations with all their employees – by employment or freelance contracts.

2. The intermediation agencies are liable before the Managing Board of NRPO and CPE in the events of:

2.1 Improper attitude on the part of their employee who acts in breach of the present Code.

2.2. Established breach of the ethical rules and standards which have been approved with the present Code. In this event, the intermediation agencies should recourse to the Commission on Ethics under NRPO for the settlement of the arisen argument before they seek cooperation from the respective administrative or court authorities.

ІІ. BASIC CONCEPTS AND DOCUMENTS IN REAL PROPERTY TRADE CONCEPTS

1. INTERMEDIATION AGENCY – a company specialized in offering intermediation services in the field of real property transactions, which has the following rights and obligations:

а) To hold negotiations on behalf of the intermediation real property agency with clients regarding all branch aspects – sale-purchase, renting and leasing, preparation of investment projects – when it has been duly authorized for this;

b) To protect the client’s interests throughout the execution of real property transactions;

c) To prepare and provide to the client relevant information or advertising offers towards the execution of a real property transaction;

d) To keep the confidential information and all other information regarding the client’s interest throughout the course of execution of real property transactions;

e) To promote and present publicly the main principles and ideas of the intermediation real property agencies – members of the NRPO;

f) The intermediation agency bears responsibility for the work of its employees;

g) The Manager of the agency clarifies to their employees the rules and standards of the Code of Professional Ethics and observes for their keeping.

2. BROKER – an employee at an intermediation real property agency who is an expert in the field of real properties and has the following rights and obligations:

а) To be loyal to the company they are representing by keeping all company and trade secrets;

b) To observe the company’s rules and standards for work and conduct which have been approved by the intermediation agency – member of the NRPO;

c) To protect the client’s interests throughout the execution of real property transactions;

d) To prepare and provide to the client relevant information or advertising offers towards the execution of a real property transaction;

e) To keep the confidential information and all other information regarding the client’s interest throughout the course of execution of real property transactions;

f) To maintain and improve their professional qualities by participating in branch seminars, schools and qualification courses organized by or in cooperation with NRPO.

A person who has employment relations with an intermediation agency cannot, without the explicit written consent of the employer, carry out competitive trade activities within the field of activity of their employer, nor can they participate in the managing or supervisory bodies of a competitive agency.

In the employment contract with people under the preceding paragraph may be included a restraint on execution of competitive economic activity for a period of up to 3 (three) years after the termination of the employment contract.

3. CLIENT – a party under a specific transaction which has entered into written contractual relations with the intermediation agency.

DOCUMENTS

1. Assignment contract of real property sale
2. Assignment contract of real property purchase
3. Assignment contract of real property lease
4. Assignment contract of real property rent
5. Contract of exclusive rights
6. Contract of real property management
7. Contract of joint action

III. PROFESSIONAL STANDARDS IN THE INTERMEDIARY – CLIENT RELATIONS

1. The intermediary is obligated to approach conscientiously and loyally all natural or legal persons which are interested parties under the transaction while keeping their client’s interest.
2. The intermediary does not withhold their professional services in the preparation of information and does not discriminate religiously, ethnically or in any other way whatsoever between the clients.
3. The intermediary agrees to protect and work for the client’s best interest only after all natural or legal persons, as well as all financial circumstances under the transaction, have been stated in a written contract which has been signed by the interested parties.
4. The intermediary does not participate in the receipt of any remuneration which has not been provided for in the contractual relations with the client.
5. The intermediary may assist in the preparation of the necessary documents by the respective administrative authorities (municipality, tax administration etc.) towards finalizing the contractual relations with the client.
6. The intermediary is obligated not to look for or prepare in a disloyal and unfair way any information which might mislead or impair their client’s interests.
7. The intermediary may represent the seller/landlord and the buyer/tenant in one and the same transaction.

IV. ETHICAL RULES FOR THE PROPER COOPERATION BETWEEN THE INTERMEDIATION AGENCIES

1. Cooperation between the intermediation agencies is not compulsory but recommendable and voluntary, thus aiming at establishing proper branch relations.
2. The intermediation agencies aim at implementing their activity at a highly professional level and being informed on all issues regarding real property market while strictly observing the legislation and the standards and rules approved by NRPO members.
3. The intermediation agencies do not allow their action to inflict damage on another intermediation agency with the objective of gaining advantage or supremacy in any real property transaction.
4. The intermediation agencies do not use unscrupulous methods against their competitors under the contractual relations with natural or legal persons.
5. Unfair competition in the field of real properties is one which is contradictory to the fair practice, endangers or impairs the competitors’ interests, provides for mistrust in their relations and in the relations with the clients.
6. According to the present Code unfair competitions is also:

• To discredit publicly or in any other way the good name and trust of the competitors, their competence, prestige and financial solvency.
• To present in any way whatsoever false data and statements regarding the activities of a competitive company and the people employed by it.
• To advertise their own activity in an untruthful way.
• To conceal or withhold crucial faults of the real property in order to mislead the client.
• To offer or advertise real properties using false or unclear information regarding the ownership, which misleads and impairs the interests of the clients.
• To use in any way whatsoever graphic or other signs of a competitive company, which might mislead the customer regarding the subject of activity.
• To advertise a real property, which has been assigned to a competitive company, without the explicit consent of this company.
• To present or publish in any form whatsoever false data about prices (speculative, lower or higher than the real ones) in order to gain advantage before the competition or to receive more profitable commercial conditions while offering a specific real property.
• To deliberately enter into contracts with clients of other companies unless they have been mutually notified of this in compliance with the specified procedure (concluded contract of joint action).
• To use compulsion or any other undue methods and means towards a client or a competitor in order to purchase or sell a given site or in order to gain information, insofar as these actions do not represent criminal acts under the Bulgarian legislation.
• All and any deliberate actions towards attracting clients which are contradictory to the present Code and result in the termination or breach of already concluded contracts with a competitive intermediation agency.
• All and any actions towards acquiring another’s trade secret, its distribution and usage.
• All and any ways and forms of misleading and fraud, including bribery of people employed by a competitive intermediation agency, in order to receive information about trade secret.

7. The members of the Managing Board of NRPO, the regional Managing Boards of NRPO, the managing bodies of other associations of real property dealers that have signed the present Code, are not entitled in their such capacity and in any way whatsoever to advertise the activities of the intermediation agencies they represent.
8. The intermediation agencies are obligated to provide actual and objective information in their advertising materials, web sites, printed publications, media statements etc.
9. The intermediation agency is obligated to inform its client objectively if there is an offer from another intermediation agency which fulfills the client’s interest.
10. The intermediation agency does not include in its database any offers which contain incomplete or unconfirmed information.
11. The intermediation agencies participate as equal partners in real property transactions and accept a commission on the part of the client whose interest they represent, unless other terms and conditions have been agreed upon in a written contract of joint action.

V. ETHICAL RULES FOR PARTNERSHIP BETWEEN AN INTERMEDIATION AGENCY AND A CLIENT

1. Knowledge and observance of the present Code of Ethics is a compulsory prerequisite for membership to NRPO pursuant to Art. 9, paragraph 1, section 3 of the Articles of Association of NRPO.
2. The Commission on Ethics suggests for discussion by the Managing Board of NRPO the activity of an intermediation agency upon occurrence of information regarding disloyalty or improper attitude to a client and/or a partner – intermediary.
3. The Commission on Ethics considers the activities of the intermediation agency upon arisen argument and upon officially filed written complaint from an interested party.
4. The Commission on Ethics considers cases of unfair competition or demonstrations of unprofessional conduct only after documentation on the issue has been prepared in writing.
5. The Commission on Ethics suggests to the Managing Board of NRPO to declare publicly the activities of an intermediation agency that does not observe the ethical rules and standards approved by NRPO members and thus lowers the reputation of the organization.
6. After a breach of the rules and standards of the present Code of Ethics has been established and proved, the Commission on Ethics is entitled to impose the following sanctions:
1. a written notice;
2. a pecuniary sanction up to 1000 leva.
7. The Commission on Ethics passes an opinion and a proposal on imposing punishment or exclusion before the Managing Board in compliance with the operating Articles of Association, as follows:
1. by a proposal to the Managing Board of NRPO for financial sanctioning exceeding 1000 leva depending on the breach;
2. by a proposal to the Managing Board for exclusion from NRPO.
8. The sanctions imposed by CPE can be appealed before the Managing Board of NRPO within two weeks of their announcement. The decision of the Managing Board of NRPO after the consideration of the case is final and is not subject to appeal.
9. The sanctions imposed by the Managing Board of NRPO can be appealed before the National Council of NRPO within two weeks of their announcement. The decision of the National Council of NRPO after the consideration of the case is final and is not subject to appeal.
10. The decisions of CPE are published in the printed editions of NRPO or are announced in another appropriate way.
11. A register is kept for the approved and entered into force decisions and sanctions.
12. 12. The present Code of Ethics was approved by the General Assembly of NRPO on January 31, 2003.