WE DO OUR PART
UNIV. OF FL LIB.
U ... R
U.S. Df. P'-^TORY
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1934
For sale by the Superintendent of Documents. Washington, D.C. Price 5 cents
Approved Code No. 392
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
REAL ESTATE BROKERAGE
I AS APPROVED ON APRIL 9, 1934
Registry No. 1743-16
This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of
Foreign and Domestic Commerce.
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Approved Code No. 392
CODE OF FAIR COMPETITION
REAL ESTATE BROKERAGE INDUSTRY
As Approved on April 9, 1934
CODE OF FAIR COMPETITION FOR THE REAL ESTATE BROKERAGE INDUSTRY
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of a Code of
Fair Competition for the Real Estate Brokerage Industry, and
hearings having been duly held thereon and the annexed report on
said Code containing findings with respect thereto, having been
made and directed to the President.
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the Presi-
dent, including Executive Order No. 6543-A, dated December 30,
1933, and otherwise; do hereby incorporate by reference said an-
nexed report and do find that said Code complies in all respects with
the pertinent provisions and will promote the policy and purposes
of said Title of said Act; and do hereby order that said Code of
Fair Competition be and it is hereby approved.
HUGH S. JOHNSON,
Adin istr-ator for Ind'strial Recovery.
K. M. SIMPSON,
Division A dministra.tor.
APRIL 9, 1934.
REPORT TO THE PRESIDENT
The White House.
SIR: The original Code of Fair Competition for the Real Estate
Brokerage Industry was submitted on August 30th, 1933, by the
Brokers Division of the National Association of Real Estate Boards
to cover Real Estate and Insurance Brokerage" business. This
Code was made a part of a general code covering related Real
Estate activities. Subsequently it was deemed advisable to segre-
gate this blanket Real Estate Code into its various activities and
entertain applications for Codes of Fair Competition for such
divisions thereof for which a Code might be applicable. A Code
for the Real Estate Brokerage Industry was therefore presented by
the National Association of Real Estate Boards an unincorporated
membership society, representing over 10,000 known members of
the Industry and truly representative of such activity. Several
revisions of the Code were made prior to the public hearing which
was held on January 10th, 1934. The Code was revised during the
recess of this hearing and submitted in its final form for approval.
Every person who requested an appearance was properly heard in
acecotla nce with statutory and regulatory requirements.
The Real Estate Brokerage Industry includes the representation
of others for compensation, fee or valuable consideration, in one
or more transactions as a whole or partial vocation in any of the
following activities: Selling or offering for sale, buying or offering
to buy, exchanging or offering to exchange, or negotiating for the
sale, purchase or exchange of real property; or leasing or offering
to lease, renting or offering to rent, or negotiating for the lease
or rental of real property; and the collection of rent, appraising or
offering to appraise the value of real property, the brokerage or
writing of insurance, or the negotiating and procuring of loans on
A survey conducted by the Code Committee of the National Asso-
ciation of Real Estate Boards indicates that the sales brokerage
business of their 10,641 members in 1928 embraced 236,055 trans-
actions aggregating in volume of dollars $1,534,621,444. By way
of indicating the decline in their activity the same number of
members in 1933 handled 75.263 transactions, aggregating in volume
of dollars $264,937,184. indicating that the volume in 1933 was
only 17.2 per cent as great as that in 1928. The same survey indi-
cated that in 1928 37,583 people were employed of which 23,079
were commission employees. In 1933 there were 30,370 people
employed of which 16.555 were commission employees. The same
survey indicates that this organization wrote 1,055,465 insurance
policies amounting to $445,445,510.
There is no real labor problem in this Industry as most of the
offices are not working longer than forty hours per week. Provision
has, however, been made in this Industry for the payment of over-
time at the rate of one and one third times the normal rate of any
employee so employed for all hours worked in excess of forty hours
per week. The provisions of this ('ode also provide for an increase
in the established minimum wage. The Fair Trade Practice provi-
sions as incorporated in this Code, we believe, will result in the elim-
ination of certain possibilities now existing for unfair competition.
Article I. States the purpose of the Code.
Article II. Accurately defines specific terms applicable to the Real
Estate Brokerage Industry as used in this Code.
Article III. The maximum hours are limited to forty hours per
week. In cases of necessity and when additional labor is not avail-
able or temporary substitution is found impracticable, any employee
may be permitted to work in excess of the maximum daily and
weekly hours, provided, that one and one third times the normal
wage rate per hour is paid for each hour of overtime so worked.
The limitation of hours does not apply to those employees engaged
in a managerial, executive or supervisory capacity who receive not
less than Thirty-Five Dollars per week.
Article IV. The minimum wages of all employees is dependent
upon population of cities and towns. Provision is also made for
the adjustment of wages above the minimum fixed in this Code if
such adjustment, has not been made prior to the approval of this
Article V. Provides that no employer shall employ any person
under 16 years of age and that no person under 18 years of age shall
be employed at operations or occupations which are hazardous in
nature or dangerous to health. This Article also sets forth manda-
tory provisions respecting the rights of employees to organize and
bargain collectively. It also provides for matters having to do with
reclassification of employees, standards for safety and health, the
observance of state laws and the posting of complete copies of this
Code so that they are accessible to employees.
Article VI. Establishes a Code Authority consisting of eleven
members to be selected by a fair method of election so as to be truly
representative of the Industry, subject to the approval of the Admin-
istrator. In addition to the eleven members above named there may
be one and not more than three members, without vote, and without
compensation by the Industry, to be appointed by the Adminis-
trator for such terms as he may specify. In addition to the organi-
zation of the Code Authority, the powers and duties thereof are
outlined in this Article.
Article VII. Sets forth Trade Practices for the Industry.
Article VIII. This Code and all the provisions thereof are ex-
pressly made subject to the right of the President in accordance with
subsection (b) of section 10 of the Act, from time to time to cancel
or modify any order, approval, license, rule, or regulation issued
under said Act.
Article IX. No provision of this Code shall be so applied as to
permit monopolies or monopolistic practices or to eliminate, oppress,
or discriminate against small enterprises.
Article X. Provisions of this Code shall not supersede or modify
the standards, requirements, or regulations established by the Real
Estate Licensing Laws of any state for the Real Estate Brokerage
Industry, where such standards, requirements, or regulations are
more stringent than the provisions of this Code.
Article XI. This Code shall become effective beginning ten days
after its approval by the Administrator.
The Deputy Administrator in his final report to me on said Code
having found as herein set forth and on the basis of all the pro-
ceedings in this matter;
I find that:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
removal of obstructions to the free flow of interstate and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of In-
dustry for the purpose of cooperative action among the trade groups,
by inducing and maintaining united action of labor and management
under adequate governmental sanctions and supervision, by eliminat-
ing unfair competitive practices, by promoting the fullest possible
utilization of the present productive capacity of industries, by avoid-
ing undue restriction of production (except as may be temporarily
required), by increasing the consumption of industrial and agricul-
tural products through increasing purchasing power, by reducing
and relieving unemployment, by improving standards of labor, and
by otherwise rehabilitating Industry.
(b) Said Industry normally employs not more than 50,000
employees; and is not classified by me as a major Industry.
(c) The Code as approved complies in all respects with the perti-
nent provisions of said Title of said Act, including without limita-
tion subsection (a) of section 3, subsection (a) of section 7, and sub-
section (b) of section 10 thereof; and that the applicant association
is an industrial association truly representative of the aforesaid
Industry, and that said association imposes no inequitable restric-
tions on admission to membership therein.
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other steps of the economic process have
not been deprived of the right to be heard prior to approval of said
For these reasons, therefore, this Code has been approved.
HUGH S. JOHNSON,
ArRm 9, 1934.
__ ~~__~__ ~._~11-.11_ -- --
CODE OF FAIR COMPETITION FOR THE REAL ESTATE
To effectuate the policies of Title I of the National Industrial
Recovery Act, this Code is established as a Code of Fair Competi-
tion for the Real Estate Brokerage Industry, and its provisions
shall be the standards of fair competition for such Industry and
are binding upon every member thereof.
SWherever used in this Code or any supplement appertaining
thereto, the terms enumerated in this Article shall have the meanings
herein defined, unless the context shall otherwise clearly indicate.
SECTION 1. The term "President" means the President of the
United States of America.
SECTION 2. The term "Act means Title I of the National Indus-
trial Recovery Act approved by the President June 16, 1933, and
any amendments thereto.
SECTION 3. The term "Administrator" means the Administrator
for Industrial Recovery.
SECTION 4. The term "Real Estate Brokerage Industry" or
"Industry ", means the representation of others, for compensation,
fee or valuable consideration, in one or more transactions, as a
whole or partial vocation, in any of the following activities: Selling
or offering for sale, buying or offering to buy, exchanging or offering
to exchange, or negotiating for the sale, purchase or exchange of
real property; or leasing or offering to lease, renting or offering to
rent, or negotiating for the lease or rental of real property; and the
collection of rent, appraising or offering to appraise the value of
real property, the brokerage or writing of insurance, or the negoti-
ating and procuring of loans on real property, as an adjunct to the
SECTION 5. The term Member of the Industry includes all those
engaged in the Industry either as an employer or on his or its own
SSECTION 6. The term "Employee includes anyone engaged in the
Industry in any capacity receiving compensation for his services,
irrespective of the nature or method of payment of such compensa-
tion, except a Member of the Industry.
SECTION 7. The term Employer includes anyone by whom any
such employee is compensated or employed.
SECTION 8. Population for the purposes of this Code shall be deter-
mined by reference to the latest Federal Census.
SECTION 1. Manximun Hours.-On and after the effective date of
this Code, no employee shall be permitted to work in excess of forty
(40) hours in any one week, or in excess of eight (8) hours in any
twenty-four (24) hour period, except as herein otherwise provided.
SECTION 2. Exceptions as to Hours.-The limitation as to hours of
labor as specified in Section 1 of this Article III shall not apply to'
(a) In cases of necessity and when additional labor is not avail-
able or temporary substitution is found impracticable, any employee
may be permitted to work in excess of the maximum daily and weekly
hours specified in Section 1 of this Article III, provided, that one
and one third (1%) times his normal wage rate per hour shall be paid
for each hour of overtime so worked. In no case shall any employee
be permitted to work in excess of forty-eight (48) hours per week.
All overtime hours worked and all overtime payments made during
seasonal peak periods shall be reported by the Code Authority to
(b) To employees in establishments in the Industry located in
towns of less than 2,500 population, not a part of a larger trade area,
which establishments employ not more than two (2) persons in
addition to the executive officers; and to employees in a managerial,
executive or supervisory capacity who receive not less than Thirty-
Five Dollars ($35.00) per week.
(c) To outside salesmen, solicitors, collectors or rental men whose
office duties require less than sixteen (16) hours per week (forty
per cent (40%) of the maximum hours as outlined in Section 1 of
this Article III).
SECTION 3. Standard Week.-No employee shall be permitted to
work more than six (6) days in any seven (7) day period.
SECTION 4. Employment by several Employers.-No employer
shall knowingly permit any employee to work for any time which,
when totalled with that already performed with another employer,
or employers in this Industry or other Industries, exceeds the maxi-
mum permitted herein.
SECTION 1. Minimum Wages.-On and after the effective date of
this Code, no employee, except as herein otherwise specified, shall be
paid less than the following weekly wage:
In cities of 500,000 population or over, or in the immediate trade
arva of such cities, Fifteen Dollars ($15.00) per week of forty (40)
In cities of 250,000 to 500,000 population, or in the immediate trade
faRln. of such cities, Fourteen Dollars and Fifty Cents ($14.50) per
wefekl of forty (40) hours.
In cities of 10,000 to 250,000 population, or in the immediate trade
nren of such cities, Fourteen Dollars ($14.00) per week of forty (40)
In towns under 10,000 population, Twelve Dollars ($12.00) per
week of forty (40) hours.
In no case shall any employee be paid a lesser weekly rate for the
forty (40) hour week herein established than such employee was
paid as of the effective date of this Code.
(a) Salesmen, solicitors, collectors, or rental men, compensated on
a commission basis, shall be exempt from the provisions of Section 1
of this Article V'.
(b) Office boys, office girls and messengers, under 18 years of age,
may be paid not less than eighty per cent (80%c) of the respective
minimum wages specified in Section 1 of this Article IV, and pro-
vided further that. the number of office boys, office girls and mes-
sengers so paid shall constitute not more than ten per cent. (10%)
of the total number of employees of any office of any one employer,
but in any case each employer shall be entitled to at least one such
SECTION 2. Part time employees shall be paid an hourly rate which
shall be not less than the pro rata amount of the weekly wages speci-
fied in Section 1 of this Article IV.
SECTION 3. TWages Above the Minim.unm.-Equitable adjustments
in all pay schedules of employees above the minimum fixed in this
Code shall be made within thirty (30) days after the effective date
of this Code by any employer who has not heretofore made such
adjustments under the National Industrial Recovery Act. In no
event, however, shall any weekly rates or hourly rates be reduced.
Within sixty (60) days after the effective date of this Code each
Member of the Industry shall make a report of such adjustment
whether made prior to or subsequent to the date of approval of this
Code to the Code Authority.
SECTION 4. Female Emrployees.-Female employees performing
substantially the same work as male employees shall receive the
same rate of pay as male employees, and when they displace male
employees they shall receive the same rate of pay as the men they
SECTION 5. Handicapped Persons.-A person whose earning ca-
pacity is limited because of age, physical or mental handicap, or
other infirmity, may be employed on light work at a wage below
the minimum established by this Code, if the employer obtains from
the state authority, designated by the United States Department
of Labor, a certificate authorizing such person's employment at such
wages and for such hours as shall be stated in the certificate. Such
authority shall be guided by the instructions of the United States
Department of Labor in issuing certificates to such persons. Each
employer shall file monthly with the Code Authority a list of all
such persons employed by him, showing the wages paid to and the
maximum hours of work for such employee.
SECTION 7. Payment of Wages.-An employer shall make payment
of all wages in lawful currency, or by negotiable check therefore,
payable on demand. These wages shall be exempt from any pay-
ments other than those voluntarily ordered by the wage earners or
required by State Laws. Pay periods for wages shall be at least
semimonthly and for salaries at least once per month. Employers
shall not withhold wages except as otherwise provided by law.
ARTICLE V-GENERAL LABOR PROVISIONS
SECTION 1. Child Labor.-No person under 16 years of age shall
be employed in the Industry. No person under 18 years of age shall
be employed at operations or occupations which are hazardous in
nature or dangerous to health. The Code Authority shall submit to
the Administrator within sixty (60) days after the'effective date of
this Code a list of such operations or occupations. In any state an
employer shall be deemed to have complied with this provision as to
age of employees if he shall have on file a certificate or permit, duly
signed by the authority of such state empowered to issue employment
or age certificates or permits, showing that the employee is of the
SECTION 2. Provisions of the Act.-(a) Employees shall have the
right to organize and bargain collectively through representatives
of their own choosing, and shall be free from the interference, re-
straint, or coercion of employers of labor, or their agents, in the
designation of such representatives or in self-organization or in other
concerted activities for the purpose of collective bargaining, or other
mutual aid or protection.
(b) No employee and no one seeking employment shall be required
as a condition of employment to join any company union or to re-
frain from joining, organizing, or assisting a labor organization of
his own choosing.
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment approved
or prescribed by the President.
SECTION 3. Reclassification of Employees.-No employer shall
reclassify employees or duties of occupations performed, or engage
in any other subterfuge for the purpose of defeating the purposes or
provisions of the Act or of this Code.
SECTION 4. Standards for Safety and Health.-Every employer
shall make reasonable provisions for the safety and health of his
employees at the place and during the hours of their employment.
Standards for safety and health shall be submitted by the Code
Authority to the Administrator within six months after the effective
date of this Code.
SECTION 5. State Laws.-No provision in this Code shall super-
sede any state or federal law which imposes on employers more
stringent requirements as to age of employees, wages, hours of work,
or as to safety, health, sanitary, or general working conditions, or
insurance, or fire protection, than are imposed by this Code.
SECTION 6. Postinq.-All employers shall post and keep posted
complete copies of this Code and all amendments thereto in con-
spicuous places accessible to employees.
SECTION 7. Dismissal.-No employee shall be dismissed by reason
of making a complaint or giving evidence with respect to a violation
of this Code.
ARTICLE VI-ORGANIZATION, CONSTITUTION, POWERS AND DUTIES OF
THE CODE AUTHORITY
SECTION 1. A Code Authority to administer this Code is hereby
constituted and shall consist of eleven (11) voting members selected
from members of the Industry truly representative of its various
interests. Eight (8) of such voting members shall be selected by the
National Association of Real Estate Boards and three (3) of such
voting members shall be members of the Industry (not members of
the National Association of Real Estate Boards). The selection of
all members of the Code Authority shall be by a fair and equitable
method of election to be approved by the Administrator.
SECTION 2. In addition to the above membership of the Code
Authority there may be one and not more than three members,
without vote, and without compensation by the Industry to be
appointed by the Administrator to serve for such terms as he may
SECTION 3. Each trade association directly or indirectly participat-
ing in the selection or activities of the Code Authority shall:
(a) Impose no inequitable restrictions on membership, and
(b) Submit to the Administrator true copies of its Articles of
Association, By-Laws, Rules and Regulations and any amendments
when made thereto, together with such other information as to mem-
bership, organization, and activities as the Administrator may deem
necessary to effectuate the purposes of the Act.
SECTION 4. In order that the Code Authority shall at all times be
truly representative of the Industry and in other respects comply
with the provisions of the Act, the Administrator may prescribe
such hearings as he may deem proper; and thereafter, if he shall find
that the Code Authority is not truly representative or does not in
other respects comply with the provisions of the Act, may require
an appropriate modification in the method of selection of the Code
SECTION 5. Members of the Industry shall be entitled to participate
in and share the benefits of the activities of the Code Authority and
to participate in the selection of the members thereof by assenting
to and complying with the requirements of this Code and sustaining
their reasonable share of the expenses of its administration. Such
reasonable share of expenses of administration shall be determined
by the Code Authority, subject to review and approval by the Ad-
ministrator, on the basis of volume of business and/or such other
factors as may be deemed equitable.
SECTION 6. Nothing contained in this Code shall constitute the
members of the Code Authority partners for any purpose. Nor
shall any member of the Code Authority be liable in any manner to
anyone for any act of any other member, officer, agent or employee
of the Code Authority. Nor shall any member of the Code Author-
ity, exercising reasonable diligence in the conduct of his duties
hereunder be liable to anyone for any act or omission to act under this
Code, except for his own wilful misfeasance or nonfeasance.
SECTION 7. Powers and Duties.-Subject to such rules and regula-
tions as may be issued by the Administrator, the Code Authority
shall have the following further powers and duties, the exercise
of which shall be reported to the Administrator and shall be subject
to his right, on review, to disapprove, after such hearing as he may
prescribe, any action taken by the Code Authority. If the Admin-
istrator shall determine at any time that any action of the Code
Authority or any agency thereof is unfair or unjust or contrary to
the public interest, the Administrator may require that such action
be suspended to afford an opportunity for investigation of the
merits of such action and further consideration by such Code Au-
thority, or agency, pending final action, which shall not be effective
unless the Administrator approves, or unless he shall fail to dis-
approve after thirty (30) days' notice to him of intention to proceed
with such action in its original or modified form.
(a) To make investigations as to the functioning and observance
of any provisions of this Code at its own instance, or upon com-
plaint of any person affected, and shall report the result thereof
to the Administrator.
(b) To insure the execution of the provisions of this Code and
provide for the compliance of the Industry with the provisions of
the Act, subject to such rules and regulations as the Administrator
(c) To adopt By-Laws and Rules and Regulations for its pro-
cedure and for the administration and enforcement of the Code.
The Code Authority shall promptly furnish to the Administrator
true copies of the By-Laws, Rules and Regulations adopted pur-
suant to this paragraph.
(d) To obtain from Members of the Industry through a confi-
dential agency such statistical information and reports as are re-
quired for the administration of the Code and to provide for
submission by Members of the Industry of such statistical informa-
tion and reports as the Administrator may deem necessary for the
purposes recited in Section 3 (a) of the Act, which information and
reports shall be submitted by Members of the Industry to such
Federal or State agencies as the Administrator may designate;
provided, that nothing in this Code shall relieve any Member of
the Industry of any existing obligations to furnish reports to any
government agency. No individual reports shall be disclosed to
any other Member of the Industry or any other party except to such
governmental agencies as may be directed by the Administrator.
(e) To use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
herein, provided that nothing herein shall relieve the Code Author-
ity of its duties or responsibilities under this Code and that such
trade associations and agencies shall at all times be subject to and
comply with the provisions hereof.
(f) To make recommendations to the Administrator for the co-
ordination of the administration of this Code with such other Codes,
if any, as may be related to the Industry.
(g) To cooperate with the Administrator in regulating the use of
any N.R.A. insignia solely by those Members of the Industry who
have assented to and are complying with, this Code.
(h) To conduct investigations and call hearings to consider fur-
ther fair trade provisions submitted by Members of the Industry
through voluntary agreement for any region or locality and to
recommend to the Administrator the adoption of such measures to
govern members of the Industry in any region or locality in their
relations with each other or with other Industries, and to recommend
to the Administrator measures for industrial planning, including
stabilization of employment, and for the general welfare of the
Industry in any such region, and to make recommendations as to
the modifications of the Code to be submitted to the Administrator
by the Code Authority. After such notice and hearings as the Ad-
ministrator may prescribe, such measures shall become effective as a
part of this Code upon approval by the Administrator.
(i) To define local, state or regional code control areas and desig-
nate the boundaries thereof subject to the approval of the
(j) To appoint committees to be selected from and by the local
real estate boards to serve as local code control boards, and where
no such local real estate boards exist, to appoint local, state or
regional code control boards, or to appoint committees selected from
and by state associations affiliated with the National Association
of Real Estate Boards as such code control boards. All such local
state or regional boards shall be truly representative of the Industry
of the code control areas within boundaries to be defined as pro-
vided for in subsection (i) above. The selection of members and
committees as local, state, or regional control boards shall be by a
fair and equitable method of election to be approved by the Adminis-
trator. Such code control boards shall have the right to prescribe
fair trade provisions for their respective local, state, or regional
code control areas under the direction of the Code Authority, and
with the approval of the Administrator, provided, such fair trade
provisions shall in no event be less stringent than those set out in this
Code in Article VII.
(k) To provide a method of registration of all members of the
Industry to be approved by the Administrator. All members of the
Industry shall be registered with the Code Authority and shall pay
their reasonable share of the expense of administering this Code as
assessed by the Code Authority after the approval ofthe Adminis-
trator has been given to such method of assessment.
ARTICLE VII-TRADE PRACTICE RULES
SECTION 1. The following trade practices are declared to constitute
methods of unfair competition between members of the Industry, and
no member of the Industry shall use or engage in any of them, di-
rectly or indirectly, through any officer, agent or employee. Engag-
ing in any one of such trade practices or of any other practices
which hereafter may be declared to be unfair methods of competition
by the Code Authority, approved by the Administrator, shall be
deemed a violation of this Code.
RULE 1. No Member of the Industry shall pay commissions or fees
to, or divide commissions or fees with anyone except with Members
of the Industry registered with the Code Authority as specified in
subsection (k) of Article VI.
RULE 2. No Member of the Industry shall fail to comply with
the requirements of the states having Real Estate License Laws.
RuLE 3. No Member of the Industry shall use any trade name or
insignia of membership in any organization of this Industry of
which he is not a member.
RULE 4. No Member of the Industry shall accept, give, or charge
any undisclosed commission, rebate, or direct profit on expenditures
made for a principal.
RULE 5. No member of the Industry shall solicit, sell or offer for
sale real property by offering free lots or conducting lotteries for
the purpose of influencing a purchaser or prospective purchaser of
RULE 6. No member of the Industry shall act in the dual capacity
of broker and undisclosed principal in any transaction.
RULE 7. No member of the Industry shall guarantee, authorize
or permit any person to guarantee future profits which may result
from the resale of real property.
RULE 8. No member of the Industry shall place a sign on any
property offering it for sale or for rent without the written consent
of the owner or his authorized agent.
RULE 9. No member of the Industry shall induce any party to a
contract of sale or lease or to break such contract for the purpose
of substituting in lieu thereof a new contract with another principal.
RULE 10. No member of the Industry shall negotiate the sale, ex-
change or lease of any real property directly with an owner or
lessor if he knows that such owner or lessor has a written outstand-
ing contract granting exclusive agency in connection with such
property with another member of the Industry.
RULE 11. No member of the Industry shall offer real property
for sale or for lease without the knowledge and consent of the owner
or his authorized agent, or on any terms other than those authorized
by the owner or his authorized agent.
RULE 12. No member of the Industry shall intentionally publish
advertising (whether printed, radio, display, or of any other nature)
which is misleading or inaccurate in any material particular, or in
any way misrepresent any properties, terms, values, policies, or
services of the business conducted.
RULE 13. No member of the Industry shall knowingly withhold
from or insert in any statement of account or invoice any statement
that makes it inaccurate in any material particular.
RULE 14. No member of the Industry shall give, or permit to be
given, or directly offer to give anything of value for the purpose
of influencing or rewarding the action of any employee, agent or
representative of another in relation to the business of the employer
of such employee, the principal of such agent or the represented
party, without the knowledge of such employer, principal or party.
This commercial bribery provision shall not be construed to prohibit
free and general distribution of articles commonly used for adver-
tising except so far as such articles are actually used for commercial
bribery as hereinabove defined.
RULE 15. No member of the Industry shall publish or circulate
unjustified or unwarranted threats of legal proceedings which tend
to or have the effect of harassing competitors or intimidating their
RULE 16. No member of the Industry shall accept employment or
compensation for appraising real property contingent upon the
reporting of a predetermined or specified valuation.
RULE 17. No member of the Industry shall issue an appraisal
report on real property, in which the member of Industry has any
interest, unless such interest is disclosed in the report.
RULE 18. No member of the Industry shall issue an appraisal
report on value of land only or improvements only, without endors-
ing thereon a statement to the effect that such valuation shall not be
added to any other valuation of improvements only or land only,
as the case may be, in determining the value of both together unless
there shall be also a separate appraisal of the whole property in
which the valuation of land and improvements are reconciled.
SECTION 1. This Code and all the provisions thereof are expressly
made subject to the right, of the President., in accordance with the
provisions of subsection (b) of Section 10 of the Act, from time to
time to cancel or modify any order, approval, license, rule, or regu-
lation issued under said Act.
SECTION 2. Such of the provi.,on.- of this Code as are not required
to be included therein by the Act may, with the approval of the
Administrator be amended as provided in Section 3 hereof, in such
manner as may be indicated by the needs of the public, by changes
in circumstances, or by experience; all the provisions of this Code,
unless so modified or eliminated, shall remain in effect until the
expiration date of Title I of the Act.
SECTION 3. An amendment may be proposed by any interested
party either to the Code Authority or directly by or to the Adminis-
trator. All proposed amendments shall be referred to the Code
Authority, who shall give members of the Industry an opportunity
to be heard thereon, and thereafter the Code Authority may make
such recommendations. thereon as is deemed proper, provided, how-
ever, that when approved by the Administrator as necessary to effec-
tuate the policies- of the Act, after such notice and hearing as he
may prescribe, any proposed amendment shall thereupon become
effective as a part of this Code.
SECTION 4. The Code Authority may make recommendations for
modifications of this Code to the Administrator which shall become
effective as a part of this Code upon approval by the Administrator
after such notice and hearing as he may prescribe.
ARrICLE IX-MO-- NOPOLIES
No provision of this Code shall be so applied as to promote monop-
olies or monopolistic practices, or to eliminate, oppress, or discrimi-
nate against small enterprises.
ARTICLE X-STATE LICENSE LAWS
Provisions of this Code shall not supersede or modify the stand-
ards, requirements, or regulations established by the Real Estate
Licensing Laws of any state for the Real Estate Brokerage Industry,
where such standards, requirements, or regulations are more strin-
gent than the provisions of this Code.
ARTICLE XI-EFFECTIVE DATE
This Code shall become effective beginning ten days after its
approval by the Administrator.
Approved Code No. 392.
Registry No. 1743-16.
UNIVERSITY OF FLORIDA
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