Citation
Proposed code of fair competition for the real estate business, real estate and insurance brokerage business, real estate and building management business, real estate mortgage business, land development and home building business, real estate appraising business as submitted on September 1, 1933

Material Information

Title:
Proposed code of fair competition for the real estate business, real estate and insurance brokerage business, real estate and building management business, real estate mortgage business, land development and home building business, real estate appraising business as submitted on September 1, 1933
Portion of title:
Real estate business, real estate and insurance brokerage business, real estate and building management business, real estate mortgage business, land development and home building business, real estate appraising business
Creator:
United States -- National Recovery Administration
Place of Publication:
Washington, D.C
Publisher:
United States Government Printing Office
Publication Date:
Language:
English
Physical Description:
v, 36 p. : ; 24 cm.

Subjects

Subjects / Keywords:
Real estate business -- Law and legislation -- United States ( lcsh )
Real estate agents -- Law and legislation -- United States ( lcsh )
Genre:
federal government publication ( marcgt )
non-fiction ( marcgt )

Notes

Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1743-16."

Record Information

Source Institution:
University of Florida
Rights Management:
This item is a work of the U.S. federal government and not subject to copyright pursuant to 17 U.S.C. §105.
Resource Identifier:
004938374 ( ALEPH )
649718986 ( OCLC )

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Full Text



Registry No. 1743-16


NATIONAL RECOVERY ADMINISTRATION



PROPOSED CODE OF FAIR COMPETITION
FOR THE

REAL ESTATE BUSINESS

REAL ESTATE AND INSURANCE BROKERAGE
BUSINESS

REAL ESTATE AND BUILDING MANAGEMENT
BUSINESS

REAL ESTATE MORTGAGE BUSINESS

LAND DEVELOPMENT AND HOME BUILDING
BUSINESS

REAL ESTATE APPRAISING BUSINESS

AS SUBMITTED ON SEPTEMBER 1, 1933


U.WE DO OUR PART
WE DO OUR PART


The Code for the Real Estate Trade
in its present form merely reflects the proposal of the above-mentioned
industry, and none of the provisions contained therein are
to be regarded as having received the approval of
the National Recovery Administration
as applying to this industry



UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1933

For sale by the Superintendent of Documents, Washington, D.C. Price 5 cents



*: I "












































SUBMITTED BY

NATIONAL ASSOCIATION OF REAL ESTATE BOARDS

(II)








*
































TABLE OF CONTENTS

Page
Letter of Transmittal and General Code Affecting Real E'.ate _-------- 1
Supplementary Codes:
Letter of Transmittal and Real Estate and Insurance Brokerage Busi-
ness Code--------------------- --------------------------- 5
Letter of Transmittal and Real Estate and Building Management
Business Code --------------------------------------------- 11
Letter of Transmittal and Real Estate Mortgage Business Code----- 17
Letter of Transmittal and Land Development and Home Building
Business Code------------------------------------------ 23
Letter of Transmittal and Code for the Profession and Business of
Real Estate Appraising-------------------------------------- 29
(III)










































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NATIONAL ASSOCIATION OF REAL ESTATE BOARDS,
SChicago, August 80, 1933.
NATIONAL RECOVERY ADMINISTRATION,
Control Division, Washington, D.C.
GENTLEMEN: In submitting a General Code Affecting Real Estate, and supple-
mentary codes for its several divisions, the National Association of Real Estate
Boards has endeavored to cover the activities of its own membership and, in
addition, to provide a basis upon v which other associations or groups having similar
or allied interests and activities might cooperate for the best interests of all. The
definition of representation on the General Code Committee and the methods of
the election of its members have been temporarily omitted until such time as
they can be worked out between the interested groups and the Administration.
Real estate has frequently been estimated to comprise at least one half of our
national wealth. In spite of its importance, however, real-estate methods are
generally unstandardized. The National Association of Real Estate Boards is
the only articulate nation-wide body representing real estate in all of its branches.
The Association believes that a great opportunity exists at this time to standardize
and coordinate the work that it is doing and the work that is being done by several
other national associations covering important but restricted fields, such as the
National Association of Building Owners and Managers, Mortgage Bankers
Association of America, the National Association of Apartment House Owners,
and others.
Because of lack of coordination, there has not been sufficient planning with
respect to the production of improvements and their adjustment to current needs.
As a consequence we have periods of feast and famine. Lack of coordination
has also produced costs that are frequently excessive and that are an obstacle to
home ownership The present crisis offers an opportunity for the major interests
and activities in the real-estate field to work together for more intelligent develop-
ment of sites, better planning and construction, sounder financing methods, and
more productive management.
In addition to this General Code the Association has filed five supplementary
codes, covering the fields of land development and home building, mortgage
financing, brokerage, management, and appraising. With each of these codes is
a letter of transmittal outlining briefly the particular problems which exist in that
field. The problems outlined in these letters can not be solved separately but
only in the light of their relationship to one another and the whole field of real-
estate activity. We believe this General Code offers the framework within which
such solutions can be worked out.
Very truly yours,
NATIONAL ASSOCIATION OF REAL ESTATE BOARDS,
By W. C. MIILLER, President,
J. W. CREE, Jr., Chairman Code Committee.











'I













GENERAL CODE AFFECTING REAL ESTATE


ARTICLE 1-PURPOSE
This code is established in order to effectuate the policy of Title I
of the National Industrial Recovery Act, by increasing purchasing
power through the payment of fair wages to employees, by limiting
hours of labor, increasing, spreading, and sustaining employment,
eliminating unfair practices, and restoring prosperity to all those
concerned.
ARTICLE 2-DEFINITIONS
Real Estate.-Land, land and improvements, or improvements.
Interests and activities.-Operation of real estate, by an owner, to
which this code is applicable and the substantial engagement as prin-
cipal, fiduciary, agent or counselor in the sale or leasing of real estate,
renting and management of real estate, brokerage of insurance con-
nected with the ownership and operation of real estate, subdivision
and development of real estate including erection of dwellings thereon,
making, negotiating, and servicing of mortgages on real estate, and
appraisal of real estate.
Member.-Any individual, partnership, association, trust, or cor-
poration subscribing to or coming under the control of this code.
General Real Estate Code Commrnittee.-The Committee charged with
responsibility and authority to administer this code under the direc-
tion of the National Recovery Administration.
Subcommittees.-Conmmittees elected by cooperating groups or
associations, responsible and subject to the General Real Estate Code
Committee.
Effectie Date.-The second Monday after this code shall have been
approved by the President of the United States.

ARTICLE 3-SUPPLEMENTARY CODES
Supplementary codes of fair competition may be prepared and
incorporated in this code when approved by the General Real Estate
Code Committee and the National Recovery Administration for the
following divisions and any other divisions that may be developed:
1. Brokerage of Real Estate and of Insurance connected with the
ownership and operation of Real Estate.
2. Real Estate and Building Management.
3. Making, Negotiating, and Servicing of Mortgages.
4. Land Development and Home Building.
5. Real Estate Appraising.







2

ARTICLE 4-MAAXIMUM HouRS, MINIMUM WAGES

On and after the effective date of this code, maximum hours and
rate of minimum wages shall be as follows:

Minimum weekly wage
Maxi-
mum
Occupation hours er 250,000 2,500 Towns under 2,500
per Over to to
week 500,00500,000 250,000

Clerical employees, not including 40 $15.00 $14.50 $14.00 $12.00
executives.
Junior office employees who are 40 12.00 11.50 11.00 9.00
learning the business, 19 to 20 All wages in towns of less
years of age, inclusive. than 2,500 population
Junior office employees who are 40 10.00 9.50 9.00 7.00 han 0 population
learning the business, 16 to 18 to be increased b not
less than 20% provided
years of age, inclusive. that this shal not re-
Office-building and business-prop- 48 15.00 14.50 14.00 12.00 that this han nce
erty operating employees. qf umouir s shown in
Apartment-, industrial-, and loft- 54 15.00 14.50 14.00 12.00 next a mou nts o th
building-operating employees work et column t
ing regular consecutive hours.
Land-development and land-main- 40 15.00 14.50 14.00 12.00
tenance employees.
Home-building employees..--.-----. 40 16.00 15. 60 15. 20 14.80

1. In the event that a state law specifies a lower maximum number
of hours or a higher minimum wage for any type or class of employees
than is herein provided, no employees may be employed for more than
the maximum number of hours or for a wage which is less than the
minimum wage provided in such state law within that state.
2. When hours worked per week are less than maximum hours
shown, the minimum rate per hour shall be determined by dividing
the minimum rate per week by the maximum hours.
3. Employees may be employed in excess of maximum hours shown
in case of emergency maintenance and repair work if time and a
third is paid for all hours in excess of maximum.
4. In the District of Columbia and the following states, Maryland,
West Virginia, Virginia, North Carolina, South Carolina, Georgia,
Florida, Alabama, Mississippi, Louisiana, Texas, Oklahoma, Arkan-
sas, Tennessee, and Kentucky, all rates shown shall be reduced by 10%.
5. Land-development, land-maintenance, and home-building em-
ployees' hours in excess of the maximum shown may be worked at the
regular rate per hour to compensate for time lost through climatic
conditions, provided that not over 8 hours in any day, 48 hours in
any week, nor an average of over 40 hours per week any six months
period shall be worked.
6. Due to seasonal variations, clerical and junior office employees
may be worked more than 40 hours per week, but not to exceed 48
hours per week at regular wages provided the total hours worked in
any 6 months period shall not exceed an average of 40 hours per week.
7. Salesmen, solicitors, and rental men working a major part of
their time outside of the office, and building managers, caretakers, or
custodians, whose chief remuneration is free rent of quarters occupied,
are exempt under this code as to the provisions of hours and wages.
8. Apartment employees, including janitors, managers, custodians,
caretakers, and others whose duties are such that they cannot work
consecutive hours but require intermittent attendance, and watchmen








of all kinds shall not be subject to any maximum hours limitation,
but shall have their present wages increased by not less than twenty
percent, provided that this shall not require wages in excess of the
minimum set out above for consecutive hours apartment operating
employees for cities of different sizes.
ARTICLE 5-LABOR RELATIONS
Employees shall have the right to organize and bargain collectively
through representatives of their own choosing, and shall be free from
the interference, restraint, or coercion of employers of labor, or their
agents, in the designation of such representatives or in self-organiza-
tion or in other concerted activities for the purpose of collective
bargaining or other mutual aid or protection.
No employee and no one seeking employment shall be required as a
condition of employment to join any company union or to refrain
from joining, organizing or assisting a labor organization of his own
choosing.
Employers shall comply with the maximum hours of labor, mini-
mum rates of pay and other conditions of employment, approved or
prescribed by the President.
After the effective date no member shall employ any person under
sixteen years of age; provided, however, that where a state law speci-
fies a higher minimum age, no person below the age so specified by
such law shall be employed within that state.
The right of employer and employee to bargain together free from
interference by any third party shall not be affected by this code.

ARTICLE 6-GENERAL UNFAIR COMPETITIVE PRACTICES
Under this code any of the practices contained in the supplementary
codes of the several divisions of Real Estate, now filed or as subse-
quently filed or amended, shall be considered unfair and shall con-
stitute a violation of this code.
ARTICLE 7-COMMISSIONS AND FEES
Uniform minimum commissions and fees shall be established by
local associations or subcommittees in accordance with local custom
and practice. If such schedules of minimum commissions and fees
established by local associations or subcommittees are submitted to
the General Real Estate Code Committee and are by it approved, they
shall thereupon become a part of this code. Until such commissions
and fees shall have been so established, the present minimum sched-
ules now in effect in the various communities shall continue.

ARTICLE 8-COLLECTION OF DATA
The General Real Estate Code Committee shall have authority to
make surveys and to compile such reports as it may deem necessary
for the accomplishment of the purposes of the National Industrial
Recovery Act. The Committee may also collect such statistics and
information as it may deem desirable in order to develop recommenda-
tions for the improvement of real estate interests and activities and
may assess against all members, equitably, the expenses incident to








the administration of this code under such rules and regulations as
may be approved by the President under Section 10-Z of Title I of the
National Industrial Recovery Act.

ARTICLE 9-GENERAL PROVISIONS
No provisions of this code shall be interpreted or applied in such
manner as to promote a monopoly or to eliminate or oppress small
enterprises and will not operate to discriminate against them and
will tend to effectuate the policy of Title I.
This code may be amended from time to time by the General Code
Committee subject to the approval of the President.
The President may from time to time cancel or modify any order,
approval, license, rule, or regulation issued under Title I of the
N.I.R.A. and any of the provisions of this code shall from time to time
be cancelled or modified to the extent necessary to conform thereto.
To the extent required or permitted by or under the provisions of
Title I of the National Industrial Recovery Act, the provisions of this
code shall apply to and be binding upon every member whether or not
the member shall have signed an agreement to comply with this code.

ARTICLE 10-ADMINISTRATION
The Administration of this code shall be vested in a committee to
be known as the General Real Estate Code Committee, which shall
consist of representatives elected so as to give representation to the
interests and activities involved and to the various sections of the
United States. (Number of members and methods of appointment
or election to be added as soon as the details can be worked out by
the cooperating groups or associations, and approved by the Ad-
ministration). This Committee shall have the authority and powers
conferred upon it. in this code and such other powers and duties as
may be necessary to administer the code. The Committee may hear
complaints against members arising out of alleged violations of this
code or of the National Industrial Recovery Act and may cause
such complaints to be arbitrated and may initiate proceedings before
the appropriate governmental agencies to prevent or to punish such
violations.
Subcommnittees.-Subcommittees may be appointed by local groups
or associations for specific purposes with the approval of the General
Real Estate Code Committee, which committee shall appoint one of
its own members as an ex-officio member of such subcommittee.













CODE OF FAIR COMPETITION FOR THE REAL ESTATE
AND INSURANCE BROKERAGE BUSINESS
A SUPPLEMENTARY CODE UNDER THE GENERAL CODE AFFECTING
REAL ESTATE FILED BY THE NATIONAL ASSOCIATION OF REAL-
ESTATE BOARDS
ARTICLE 1-PURPOSE
This code is established in order to effectuate the policy of Title I
of the National Industrial Recovery Act, by increasing purchasing
power through the payment of fair wages to employees, by limiting
hours of labor, increasing, spreading, and sustaining employment,
eliminating unfair practices, preventing the destruction of capital
assets, and restoring prosperity to all those concerned.
This code is one of a number of supplementary codes covering
various divisions of the real-estate business. It has been filed as a
supplementary code to assist the Administration in bringing together
under one coordinated plan the various national groups and associa-
tions of interests and activities affecting real estate.

ARTICLE 2-DEFINITIONS
Real Estate.-Land, land and improvements, or improvements.
Insurance.-All forms of insurance pertaining to the ownership and
operation of real estate.
Brokerage business.-The selling or buying of real estate or interests
therein for others for a. commission or fee, or the counselling and advis-
ing on matters pertaining to real estate for a fee, or the leasing or
renting of real estate for a commission or fee, or the selling of insurance
for a commission or fee.
Mlember.-Any individual, partnership, association, trust, or corpo-
ration subscribing to or coming under the control of this code.
Interests and activities.-Operat.ion of real estate by an owner, to
which this code is applicable, and the substantial engagement as
principal, fiduciary, agent, or counsellor in the sale or leasing of real
estate; renting and management of real estate; brokerage of insurance
connected with the ownership and operation of real estate; subdivision
and development of real estate, including erection of dwellings
thereon; making, negotiating, and servicing of mortgages on real
estate; and the appraisal of real estate.
National Real Estate and Insurance Brokerage Code Cominitlee.-
The Committee charged with the responsibility and authority to
administer this code under the direction of the National Recovery
Administration.
Subcommittees.-Committees elected by local groups or associations
responsible and subject to the National Real Estate and Insnrance
Brokerage Code Committee.








ARTICLE 3-M- MAXIMUM HOURS, MINIMUM WAGES

On and after the effective date of this code, maximum hours and
rate of minimum wages shall be as follows:

Minimum weekly wage
MIaxi- ________
Occupation mum Towns under 2,500
Shs er Over 250,000 2,500 to
week 500,000 5,00 250,000


Clerical employees, not including ex- AU wages in towns of
ecutives............................. 40 $15.00 $14.50 $14.00 $12.00 less than 2,500 popu-
Junior office employees who are learn- lation to be increased 20
ing the business, 19 to 20 yrs. of age, bro ided that this
inclusive ...............-..-.. ...... 40 $12.00 $11.50 $11.00 $9.00 pr d t thi
Junior office employees who are learn- wages in excess of
ing the business, 16 to 18 yrs. of age,c s
inclusive............--------------------.. 40 $10.00 $9.50 $9.00 $7.00 amounts shown in
next column to the
left.

1. In the event that a state law specifies a lower maximum number
of hours or a higher minimum wage for any type or class of em-
ployees than is herein provided, no employees may be employed for
more than the maximum number of hours or for a wage which is less
than the minimum wage provided in such state law within that state.
2. When hours worked per week are less than maximum hours
shown, the minimum rate per hour shall be determined by dividing
the minimum rate per week by the maximum hours.
3. Employees may be employed in excess of maximum hours shown
in case of emergency maintenance and repair work if time and a third
is paid for all hours in excess of maximum.
4. In the District of Columbia and the following states, Maryland,
West Virginia, Virginia, North Carolina, South Carolina, Georgia,
Florida, Alabama, Mississippi, Louisiana, Texas, Oklahoma, Arkansas,
Tennessee, and Kentucky, all rates shown shall be reduced by 10%.
5. Due to seasonal variations, clerical and junior office employees
may be worked more than 40 hours per week but not to exceed 48
hours per week at regular wages, provided the total hours worked in
any 6 months' period shall not exceed an average of 40 hours per
week.
6. Salesmen, solicitors, and rental men working a major part of
their time outside of the office, and building managers, caretakers, or
custodians, whose chief remuneration is free rent of quarters occupied,
are exempt under this code as to the provisions of hours and wages.

ARTICLE 4-LABOR RELATIONS

Employees shall have the right to organize and bargain collectively
through representatives of their own choosing, and shall be free from
the interference, restraint, or coercion of employers of labor, or their
agents, in the designation of such representatives or in self-organiza-
tion or in other concerted activities for the purpose of collective
bargaining or other mutual aid or protection.
No employee and no one seeking employment shall be required as
a condition of employment to join any company union or to refrain








from joining, organizing, or assisting a labor organization of his own
choosing.
Employers shall comply with the maximum hours of labor, mini-
mum rates of pay, and other conditions of employment approved or
prescribed by the President.
After the effective date no member shall employ any person under
sixteen years of age; provided, however, that where a state law
specifies a higher minimum age, no person below the ago so specified
by such law shall be employed within that state.
The right of employer and employee to bargain together free from
interference by any third party shall not be affected by this code.

ARTICLE 5-GENERAL UNFAIR COMPETITIVE PRACTICES
Under this code the following practices shall be considered unfair:
1. Offering to transact or transacting business for a compensation
which is determined on a basis less than the established rates under
this code.
2. Paying commissions or fees to or dividing commissions or fees
with other than members substantially engaged in activities as set
out in Article 2.
3. Using any trade name or insignia of membership in any organiza-
tion unless entitled to use it.
4. Acceptance of or charging any undisclosed commission, rebate,
or profit on expenditures made for a principal.
5. Seeking prospects or purchasers for real estate by offering the
public free lots, lottery, contest prizes, or other similar inducements
without adequate consideration therefore.
6. Acting in the dual capacity of agent and undisclosed principal
in any transaction.

ARTICLE 6-COMMISSIONS AND FEES
Uniform minimum commissions and fees shall be established by
local associations or subcommittees in accordance with local custom
and practice. If such schedules of minimum commissions and fees
established by local associations or subcommittees are submitted to
the National Real Estate and Insurance Brokerage Code Committee
and are by it approved, they shall thereupon become a part of this
code. Until such commissions and fees shall have been so estab-
lished, the present minimum schedules now in effect in the various
communities shall continue.

ARTICLE 7-COLLECTION OF DATA
The National Real Estate and Insurance Brokerage Code Com-
mittee shall have authority to make surveys and to compile such
reports as it. may deem necessary for the accomplishment of the pur-
poses of the National Industrial Recovery Act. The Committee
may also collect such statistics and information as it may deem desir-
able in order to develop recommendations for the improvement of
real estate interests and activities and may assess against all members,
equitably, the expenses incident to the administration of this code
under such rules and regulations as may be approved by the President
under Section 10-A of Title I of the National Industrial Recovery Act.









ARTICLE 8-GENERAL PROVISIONS
No provision of this code shall be interpreted or applied in such
manner as to promote a monopoly or to eliminate or oppress small
enterprises and will not operate to discriminate against them and
will tend to effectuate the policy of Title I.
This code may be amended from time to time by the National
Real Estate and Insurance Brokerage Code Committee subject to
the approval of the President.
The President may from time to time cancel or modify any order,
approval, license, rule, or regulation issued under Title I of the
N.I.R.A., and any of the provisions of this code shall from time to
time be cancelled or modified to the extent necessary to conform
thereto.
To the extent required or permitted by or under the provisions of
Title I of the National Industrial Recovery Act, the provisions of
this code shall apply to and be binding upon every member whether
or not the member shall have signed an agreement to comply with
this code.
ARTICLE 9-ADMINISTRATION
The administration of this code shall be vested in a committee to
be known as the National Real Estate and Insurance Brokerage Code
Committee, which shall consist of six members, elected so as to give
representation to the various sections of the United States, appointed
by the Chairman of the Brokers Division of the National Association
of Real Estate Boards and approved by the Board of Directors of the
National Association of Real Estate Boards.
This Committee shall have the authority and powers conferred
upon it in this code and such other powers and duties as may be
necessary to administer the code, subject however to the approval of
the General Real Estate Code Committee as set. up in the General
Code Affecting Real Estate to which this Code is supplementary.
The Committee may hear complaints against members arising out
of alleged violations of this code or of the National Industrial Re-
covery Act and may cause such complaints to be arbitrated and may
initiate proceedings before the appropriate governmental agencies to
prevent or to punish such violations.
Subcommit tees.-Subcommittees may be appointed by local asso-
ciations for specific purposes, with the approval of the National Real
Estate and Insurance Brokerage Code Committee, which committee
shall appoint one of its own members as an ex-officio member of such
subcommittee.
NATIONAL ASSOCIATION OF REAL ESTATE BOARDS,
Chicago, August 30, 1933.
NATIONAL RECOVERY ADMINISTRATION,
Control Division, Washington, D.C.
GENTLEMEN: In submitting this code of fair competition for the Real Estate
and Insurance Brokerage Business, the Brokers Division of the National Associa-
tion of Real Estate Boards desires to call the attention of the Administration to
the fact. that during the past five years the business of real estate brokerage has
shrunk until today it is approximately only 10% of the 1928 volume, as shown
by the tabulations of an exhaustive questionnaire sent to nearly 12,000 members
of the National Association of Real Estate Boards in 502 cities of the United
States.









Insurance, limited to that type of insurance which is written in connection
with the ownership or operation of real estate, has for many years been handled
by practically all real estate brokers. It is universally and necessarily a function
of the real estate broker and for that. reason it has been included in this code.
The Brokers Division of the National Association of Real Estate Boards is
comprised of the national leaders in this branch of the business and constitute
the representative body of the whole Association in this field.
Particular attention is called to the copy of a letter of transmittal accompanying
the General Code affecting Real Estate, to which the Appraisers' Code is
supplementary.
Although at this time, in almost every case, the increased wages required by
the code submitted must come out of capital and not out of earnings, and al-
though because of the service nature of the real estate business most of its
employment problems cannot be approached from the same angle as those of
industry, this group in presenting its code has endeavored to meet the President's
request in a manner calculated to materially assist the general recovery program
and pledges the utmost cooperation in the working out of any further necessary
details.
Very truly yours,
BROKERS DIVISION OF THE NATIONAL
ASSOCIATION OF REAL ESTATE BOARDS,
By H. CLIFFORD BANGS, Chairman.










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CODE OF FAIR COMPETITION FOR THE REAL ESTATE AND
BUILDING MANAGEMENT BUSINESS
A SUPPLEMENTARY CODE UNDER THE GENERAL CODE AFFECTING
REAL ESTATE FILED BY THE NATIONAL ASSOCIATION OF REAL
ESTATE BOARDS
ARTICLE 1-PURPOSE
This code is established in order to effectuate the policy of Title I
of the National Industrial Recovery Act, by increasing purchasing
power through the payment of fair wages to employees, by limiting
hours of labor, increasing, spreading, and sustaining employment,
eliminating unfair practices, preventing the destruction of capital
assets, and restoring prosperity to all those concerned.
This code is one of a number of supplementary codes covering
various divisions of the real estate business. It has been filed as a
supplementary code to assist the Administration in bringing together
under one coordinated plan the various national groups and associa-
tions of interests and activities affecting real estate.

ARTICLE 2-DEFINITIONS
Real Estate.-Land, land and improvements, or improvements.
Real-Estate Management Business.-The leasing, renting, and
management of real estate.
Interests and Activities.-Operation of real estate by an owner to
which this code is applicable and the substantial engagement as
principal, fiduciary, agent or councillor in the sale or leasing of real
estate, renting and management of real estate, brokerage of insurance
connected with the ownership and operation of real estate, subdivi-
sion and development of real estate including erection of dwellings
thereon, making, negotiating, and servicing of mortgages on real
estate, and appraisal of real estate.
S Member.-Any individual, partnership, association, trust, or cor-
poration subscribing to or coming under the control of this code.
S National Real Estate and Building Manager ent Code Committee.-
The Committee charged with responsibility and authority to admin-
ister this code under the direction of the National Recovery
*:r: Administration.
S Subcommittees.-Committees elected by cooperating associations,
i responsible and subject to the National Real Estate and Building
Management Code Committee.
Effective Date.-The second Monday after this code shall have
Been approved by the President of the United States.
., 9128--33-3 (11)







12

ARTICLE 3-MAXIMUM HOURS, MINIMUM WAGES

On and after the effective date of this code, maximum hours and
rate of minimum wages shall be as follows:

Max- minimum weekly wage
Max-
imum
Occupation hours 250000 2,500 Towns under 2,500
per Over to to
week 500,000 500,000 250,000

Clerical employees, not including ex-
ecutives.--.-.. ............-......... 40 $15.00 $14.50 $14.00 $12.00 All wages in towns of
Junior office employees who are learn- All s in towns of
ing the business, 19 to 20 years of less than t 2,500 popn
age, inclusive ...--.... ....... 40 12.00 11.50 11.00 9.00 lation to be greased
Junior office employees who are learn- by not less than 20%
ing the business, 16 to 18 years of provided that this
age, inclusive..-......-.........----- 40 10.00 9.50 9.00 7.00 shall nt require
Office-building and business-property wages i excess of
operating employees................. 48 15.00 14.50 14.00 12.00 amounts shown in
Apartment-, indutrial-, and loft- next column to the
building operating employees work- left.
ing regular consecutive hours---...--.... 54 15.00 14.50 14.00 12.00

1. In the event that a state law specifies a lower maximum number
of hours or a higher minimum wage for any type or class of employees,
than is herein provided, no employees may be employed for more
than the maximum number of hours or for a wage which is less than
the minimum wage provided in such state law within that state.
2. When hours worked per week are less than maximum hours
shown, the minimum rate per hour shall be determined by dividing
the minimum rate per week by the maximum hours.
3. Employees may be employed in excess of maximum hours shown
in case of emergency maintenance and repair work if time and a third
is paid for all hours in excess of maximum.
4. In the District of Columbia and the following states, Maryland,
West Virginia, Virginia, North Carolina, South Carolina, Georgia,
Florida, Alabama, Mississippi, Louisiana, Texas, Oklahoma, Arkan-
sas, Tennessee, and Kentucky, all rates shown shall be reduced by 10%.
5. Due to seasonal variations, clerical and junior office employees
may be worked more than 40 hours per week but not to exceed 48
hours per week at regular wages provided the total hours worked in
any 6-month period shall not exceed an average of 40 hours per week.
6. Salesmen, solicitors, and rental men working a major part of
their time outside of the office, and building managers, caretakers,
or custodians, whose chief remuneration is free rent of quarters
occupied, are exempt under this code as to the provisions of hours
and wages.
7. Apartment employees, including janitors, managers, custodians,
caretakers, and others whose duties are such that they cannot work
consecutive hours but require intermittent attendance, and watch-
men of all kinds shall not be subject to any maximum hours limitation
but shall have their present wages increased by not less than twenty
percent, provided that this shall not require wages in excess of the
minimum set out above for consecutive hours apartment operating
employees for cities of different sizes.








ARTICLE 4-LABOR RELATIONS
Employees shall have the right to organize and bargain collectively
through representatives of their own choosing, and shall be free from
the interference, restraint, or coercion of employers of labor, or their
agents, in the designation of such representatives or in self-organiza-
tion or in other concerted activities for the purpose of collective
bargaining or other mutual aid or protection.
No employee and no one seeking employment shall be required as
a condition of employment to join any company union or to refrain
from joining, organizing or assisting a labor organization of his own
choosing.
Employers shall comply with the maximum hours of labor, mini-
mum rates of pay and other conditions of employment, approved or
prescribed by the President.
After the effective date no member shall employ any person under
sixteen years of age; provided, however, that where a State law speci-
fies a higher minimum age, no person below the age so specified by
such law shall be employed within that state.
The right of employer and employee to bargain together free from
interference by any third party shall not be affected by this code.

ARTICLE 5-GENERAL UNFAIR COMPETITIVE PRACTICES
Under this code the following practices shall be considered unfair:
1. Offering to transact or transacting business for a compensation
which is determined on a basis less than the established rates under
this code.
2. Paying commissions or fees to or dividing commissions or fees
with other than members substantially engaged in activities as set
out in Article 2.
3. Using any trade name or insignia of membership in any organiza-
tion unless entitled to use it.
4. Acceptance of or charging any undisclosed commission, rebate,
or profit on expenditures made for a principal.
5. Acting in the dual capacity of agent and undisclosed principal
in any transaction.

ARTICLE 6-COMMISSIONS AND FEES
Uniform minimum commissions and fees shall be established by
local associations or subcommittees in accordance with local custom
and practice. If such schedules of minimum commissions and fees
established by local associations or subcommittees are submitted to
the Real Estate and Building Management Code Committee and are
by it approved, they shall thereupon become a part of this code.
Until such commissions and fees shall have been so established, the
present minimum schedules now in effect in the various communities
shall continue.
ARTICLE 7-COLLECTION OF DATA
The National Real Estate and Building Management Code Com-
mittee shall have authority to make surveys and to compile such
reports as it may deem necessary for the accomplishment of the








purposes of the National Industrial Recovery Act. The Committee
may also collect such statistics and information as it may deem desir-
able in order to develop recommendations for the improvement of
real estate interests and activities and may assess against all members,
equitably, the expenses incident to the administration of this code
under such rules and regulations as may be approved by the President
under Section 10-A of Title I of the National Industrial Recovery Act.

ARTICLE 8-GENERAL PROVISIONS
No provisions of this code shall be interpreted or applied in such
manner as to promote a monopoly or to eliminate or oppress small
enterprises and will not operate to discriminate against them and will
tend to effectuate the policy of Title I.
This code may be amended from time to time by the General Code
Committee subject to the approval of the President.
The President may from time to time cancel or modify any order,
approval, licence, rule, or regulation issued under Title 1 of the
N.I.R.A. and any of the provisions of this code shall from time to
time be cancelled or modified to the extent necessary to conform
thereto.
To the extent required or permitted by or under the provisions of
Title I of the National Industrial Recovery Act, the provisions of
this code shall apply to and be binding upon every member whether
or not the member shall have signed an agreement to comply with
this code.
ARTICLE 9-ADMINISTRATION
The administration of this code shall be vested in a committee to
be known as the National Real Estate and Building Management
Code Committee, which shall consist of six members, elected so as
to give representation to the various sections of the United States,
appointed by the President of the Institute of Real Estate Manage-
ment formerly the Property Management Division of the National
Association of Real Estate Boards and approved by the Board of
Directors of the National Association of Real Estate Boards. This
Committee shall have the authority and powers conferred upon it
in this code and such other powers and duties as may be necessary
to administer the code subject, however, to the approval of the
General Real Estate Code Committee as set up in the General Code
Affecting Real Estate to which this Code is supplementary. The
Committee may hear complaints against members arising out of
alleged violations of this code or of the National Industrial Recovery
Act and may cause such complaints to be arbitrated and may initiate
proceedings before the appropriate governmental agencies to prevent
or to punish such violations.
Subcommittees.-Subcommittees may be appointed by local groups
or associations for specific purposes with the approval of the National
Real Estate and Building Management Code Committee, which
committee shall appoint one of its own members as an ex-ofEfcio
member of such subcommittee.










NATIONAL ASSOCIATION OF REAL ESTATE BOARDS,
Augustl 9, 1933.
NATIONAL RECOVERY ADMINISTRATION.
Control Division, Washington, D.C.
GENTLEMEN: In submitting this code of fair competition for the real-estate
and building-management business, The Institute of Real Estate Management
(formerly the Property Management Division' of the National Association of
Real Estate Boards desires to call the attention of the Administration particularly
to the following conditions existing in the business.
The Institute of Real Estate Management of the National Association of Real
Estate Boards is composed of those who are leaders in this branch of the business
and constitutes the representative body of the whole Association in this field.
Attention is called to the fact that a code covering the field of Office and Loft
Building Industry has been filed by the National Association of Building Owners
and Managers and that another code covering the field of Apartment Building
Industry has been or will be filed by the same Association. Attention is also
called to the fact that a code covering the Apartment House Industry has been
or will shortly be filed by the National Association of Apartment House Owners.
The Institute of Real Estate Management and the National Association of Real
Estate Boards as a whole have cooperated and desire to continue to cooperate
with the two associations mentioned above and any others that may be repre-
sentative of the business, in the working out of final details of a code for the
real-estate and building-management business.
Particular attention is called to the attached copy of a letter of transmittal of
a general code affecting real estate, regarding the coordination of the real-estate
and building-management business and other interests and activities affecting
real estate through this general code.
Attention is also called to the fact that a rather unusual condition exists as to
operating employees in the apartment-building field. After a very detailed and
careful study of the situation it is our opinion that these operating employees
should be divided into two general classes; those whose duties can be performed
in regular and consecutive hours of labor, and those whose duties are such that
they require intermittent but not continuous hours of laI-l r.
In the first class are employees in those large buildiins where more than one
person is normally employed. This type of employee is now generally working
from ten to twelve hours per day, frequently seven days per week. The fifty-
four-hour week proposed for this class will require the employment of a great
many more people and will add materially to the pay roll of buildings, most of
which are in receivership or financial difficulty. In order to minimize the burden
being placed upon the owners of these buildings at this time we hope that the
Administration will give careful consideration to these facts and grant the maxi-
mum of fifty-four hours.
In the second group are included the janitors, custodians, and managers of the
tens of thousands of smaller apartment buildings in all of our cities, commonly
referred to as "walk-up" apartments. The duties of these employees are such
that they do not require continuous attention but because of the necessity of
tending fires and showing vacant apartments to prospects usually require
residence in the property. These buildings also are producing very little, if any,
net income. Many are in receivership and financial difficulty. After careful
and thorough discussion with owners and managers of this type of property from
all over the United States, keeping constantly in mind the objectives of the
Administration, we believe that this type of employees should not be subject to
maximum-hour restrictions. It is a general practice in the smaller buildings for
one janitor to service several buildings, often under several owners or agents.
It is almost impossible to measure his work on an hour basis. The suggested
arbitrary increase of not less than 20% in the present wages of this type of em-
ployee will effectuate the purposes of the N.I.R.A. and will greatly simplify
administration of the code. Inasmuch as buildings of this type are common
in all parts of the United States, the working out of the provisions for the em-
ployees servicing them is a problem of major importance. The fact that it was
not originally included in the apartment house code of the National Association
of Building Owners and Managers is probably due to the fact that most of the
buildings represented by that organization are of the fireproof elevator type where
it is practical to work employees on a consecutive-hour basis. Many of these
buildings are located in New York and a few other large cities.
Although at this time, in almost every case, the increased wages required by
this code must come out of capital and not out of earnings, and although because







16

of the service nature of the real-estate and building-management business its em-
ployment problems cannot be approached from the same angle as those of in-
dustry, this group in presenting its code has endeavored to meet the President's
request in a manner calculated to materially assist the general recovery program
and pledges the utmost cooperation in the working out of any further necessary
details.
Very truly yours,
THE INSTITUTE OF REAL ESTATE MANAGEMENT,
NATIONAL ASSOCIATION OF REAL ESTATE BOARDS,
By KENNETH C. BROWN, President.














CODE OF FAIR COMPETITION FOR THE REAL ESTATE
MORTGAGE BUSINESS
A SUPPLEMENTARY CODE UNDER THE GENERAL CODE AFFECTING
REAL ESTATE FILED BY THE NATIONAL ASSOCIATION OF REAL
ESTATE BOARDS
ARTICLE 1-PURPOSE
This code is established in order to effectuate the policy of Title I
of the National Industrial Recovery Act, by increasing purchasing
power through the payment of fair wages to employees, by limiting
hours of labor, increasing, spreading, and sustaining employment,
eliminating unfair practices, preventing the destruction of capital
assets, and restoring prosperity to all those concerned.
This code is one of a number of supplementary codes covering
various divisions of the real estate business. It has been filed as a
supplementary code to assist the Administration in bringing together
under one coordinated plan the various national groups and associa-
tions of interests and activities affecting real estate.

ARTICLE 2-DEFINITIONS
Real Estate.-Land, land and improvements, or improvements.
Mortgage Business.-The making, negotiating, and servicing of
mortgages on real estate.
Interests and activities.-Operation of real estate by an owner, to
which this code is applicable and the substantial engagement as
principal, fiduciary, agent, or councillor in the sale or leasing of real
estate, renting and management of real estate, brokerage of insurance
connected with the ownership and operation of real estate, subdivision
and development. of real estate including erection of dwellings thereon,
making, negotiating, and servicing of mortgages on real estate, and
appraisal of real estate.
Member.-Any individual, partnership, association, trust, or cor-
poration subscribing to or coming under the control of this code.
National Real Estate Mortgage Code Committee.-The Committee
charged with responsibility and authority to administer this code
under the direction of the National Recovery Administration.
Subcommittees.-Committees appointed by cooperating groups or
associations, responsible and subject to the National Real Estate
Mortgage Code Committee.
Efective Date.-The second Monday after this code shall have been
approved by the President of the United States.
(17)









ARTICLE 3--MAXIMUM HOURs, MINIMUM WAGES

On and after the effective date of this code, maximum hours and
rate minimum wages shall be as follows:

Minimum weekly wage
Ma.Ii-
mum
Occupation hours 250,0 Towns under 2,500
per Over 2t50 2,500 to
week 500,000 500,000 250,000

Clerical employees and field men; All wages in towns of less
not including executives--.......... 40 $15.00 $14.50 $14.00 $12.00 than 2,500 population
Junior office employees who are to be increased by not
learning the business, 19 to 20 less than 20% provided
years of age, incl. ..------------ 40 12.00 11.50 11.00 9.00 that this shall not re-
Junior office employees who are quire wages in excess of
learning the business, 16 to 18 amounts shown in next
years of age, incl....--- .------. 40 10.00 9.50 9.00 7.00 column to the left.


1. In the event that a state law specifies a lower maximum number
of hours or a higher minimum wage for any type or class of employees,
than is herein provided, no employees may be employed for more
than the maximum number of hours or for a wage which is less than
the minimum wage provided in such state law within that state.
2. In the District of Columbia and the following states, Maryland,
West Virginia, Virginia, North Carolina, South Carolina, Georgia,
Florida, Alabama, Mississippi Louisiana, Texas, Oklahoma, Arkansas,
Tennessee, and Kentucky, all rates shown shall be reduced by 10%.
3. Due to seasonal variations clerical and junior office employees
may be worked more than 40 hours per week but not to exceed 48
hours per week at regular wages provided the total hours worked in
any 6 months' period shall not exceed an average of 40 hours per
week.
4. The minimum rates of wages provided for herein shall not be
interpreted so as to reduce wages now being paid which are in
greater amount than the minimum wage provisions of this code, even
though the hours of work are reduced.

ARTICLE 4-LABOR RELATIONS

Employees shall have the right to organize and bargain collectively
through representatives of their own choosing, and shall be free from
the interference, restraint, or coercion of employers of labor, or their
agents, in the designation of such representatives or in self-organiza-
tion or in other concerted activities for the purpose of collective
bargaining or other mutual aid or protection.
No employee and no one seeking employment shall be required as
a condition of employment to join any company union or to refrain
from joining, organizing, or assisting a labor organization of his own
choosing.
Employers shall comply with the maximum hours of labor, mini-
mum rates of pay, and other conditions of employment approved or
prescribed by the President.
After the effective date no member shall employ any person under
sixteen years of age; provided, however, that where a state law








specifies a higher minimum age no person below the age so specified
by such law shall be employed within that State.
The right of employer and employee to bargain together free from
'interference by any third party shall not be affected by this code.

ARTICLE 5-GENERAL UNFAIR COMPETITIVE PRACTICES
Under this code the following practices shall be considered unfair:
1. Offering to transact. or transacting business for a compensation
which is determined on a basis less than the established rates under
this code.
2. Paying commissions or fees to or dividing commissions or fees
with other than members substantially engaged in activities as set
out in Article 2.
3. Using any trade name or insignia of membership in any organi-
zation unless entitled to use it.
4. Acceptance of or charging any undisclosed commission, rebate,
or profit on expenditures made for a principal.

ARTICLE 6--COMMISSIONS AND FEES
Uniform minimum commissions and fees shall be establihsed by
local associations or subcommittees in accordance with local custom
and practice. If such schedules of minimum commissions and fees
established by local associations or subcommiittees are submitted to
the National Real Estate MIortgage Code Committee and are by it
approved, they shall thereupon become a part of this code. Until
such commissions and fees shall have been so established, the present
minimum schedules now in effect in the various communities shall
continue.
ARTICLE 7-COLLECTION OF DATA
The National Real Estate Mortgage Code Committee shall have
authority to make surveys and to compile such reports as it may
deem necessary for the accomplishment of the purposes of the National
Industrial Recovery Act. The Committee may also collect such
statistics and information as it may deem desirable in order to develop
recommendations for the improvement of real estate interests and
activities and may assess against all members, equitably, the expenses
incident to the administration of this code under such rules and regu-
lations as may be approved by the President under Section 10-A of
Title I of the National Industrial Recovery Act.

ARTICLE 8-GENERAL PROVISIONS
No provision of this code shall be interpreted or applied in such
manner as to promote a monopoly or to eliminate or oppress small
enterprises and will not operate to discriminate against them and will
tend to effectuate the policy of Title I.
This code may be amended from time to time by the National Real
Estate Mortgage Code Committee subject to the approval of the
President.
The President may from time to time cancel or modify any order,
approval, license, rule, or regulation issued under Title I of the
National Industrial Recovery Act and any of the provisions of this






20

code shall from time to time be cancelled or modified to the. extent
necessary to conform thereto.
To the extent required or permitted by or under the provisions of
Title I of the National Industrial Recovery Act, the provisions of
this code shall apply to and be binding upon every member whether
or not the member shall have signed an agreement to comply with
this code.
ARTICLE 9-ADMINISTRATION

The administration of this code shall be vested in a committee to be
known as the National Real Estate Mortgage Code Committee, which
shall consist of six members, selected so as to give representation to
the various sections of the United States, appointed by the Chairman
of the Mortgage and Finance Division of the National Association of
Real Estate Boards and approved by the Board of Directors of the
National Association of Real Estate Boards.
This Committee shall have the authority and powers conferred
upon it in this code and such other powers and duties as may be
necessary to administer the code, subject however to the approval
of the General Real Estate Code Committee as set up in the General
Code Affecting Real Estate to which this code is supplementary.
The Committee may hear complaints against members arising out of
alleged violations of this code or of the National Industrial Recovery
Act and may cause such complaints to be arbitrated and may initiate
proceedings before the appropriate governmental agencies to prevent
or to punish such violations.
Subconrnittees.-Subcommittees may be appointed by local groups
or associations for specific purposes with the approval of the National
Real Estate Mortgage Code Committee, which committee shall
appoint one of its own members as an ex officio member of such
subcommittee.
NATIONAL ASSOCIATION OF REAL ESTATE BOARDS,
Chicago, August 30, 1933.
NATIONAL RECOVERY ADMINISTRATION,
Control Division, Washington, D.C.
GENTLEMEN: In submitting this code of fair competition for the real-estate
mortgage business the Mortgage and Finance Division of the National Association
of Real Estate Boards desires to call the attention of the Administration to the
fact that during the past three or four years the income of the mortgage business
has been very materially reduced due to inability to make or negotiate mortgages,
and that during this time of greatly decreased income the labor connected with
the servicing of mortgages previously made has increased manyfold. Payment
of taxes must be checked and rechecked and the problem of collections and fore-
closures adds a heavy burden.
The Mortgage and Finance Division of the National Association of Real
Estate Boards is comprised of those who are the national leaders in this branch
of the business and constitute the representative body of the whole Association
in this field.
Attention is called to the fact that a code covering this same field has been or
will soon be filed with the Administration by the Mortgage Bankers Association
of America. This Division has cooperated and desires to continue to cooperate
with the Mortgage Bankers Association in the working out of final details of a
code for the mortgage business.
Particular attention is called to the attached copy of a letter of transmittal of
a general code affecting real estate, regarding the coordination of the real-estate
mortgage business and other interests and activities affecting real estate through
this general code.
Although at this time in almost every case the increased wages required by the
code submitted must come out of capital and not out of earnings, and although
because of the service nature of the real-estate business most of its employment







21

problems cannot be approached from the same angle as those of industry, this
group in presenting its code has endeavored to meet the President's request in a
manner calculated to materially assist the general recovery program and pledges
the utmost cooperation in the working out of any further necessary details.
Yours very truly,
MORTGAGE AND FINANCE DIVISION,
NATIONAL ASSOCIATION OF REAL ESTATE BOARDS,
By AUGUST C. SEHRT, Chairman.




J:













CODE OF FAIR COMPETITION FOR THE LAND DEVELOP-
MENT AND HOME BUILDING BUSINESS
A SUPPLEMENTARY CODE UNDER THE GENERAL CODE AFFECTING
REAL ESTATE FILED BY THE NATIONAL ASSOCIATION OF REAL
ESTATE BOARDS
ARTICLE 1-PURPOSE
This code is established in order to effectuate the policy of Title I
of the National Industrial Recovery Act, by increasing purchasing
power through the payment of fair wages to employees, by limiting
hours of labor, increasing, spreading, and sustaining employment,
eliminating unfair practices, preventing the destruction of capital
assets, and restoring prosperity to all those concerned.
This code is one of a number of supplementary codes covering
various divisions of the real estate business. It has been filed as a
supplementary code to assist the Administration in bringing together
under one coordinated plan the various national groups and associa-
tions of interests and activities affecting real estate.

ARTICLE 2-DEFINITIONS
Real Estate.-Land, land and improvements, or improvements.
Interests and Activities.-Operation of real estate by an owner to
which this code is applicable and the substantial engagement as
* principal, fiduciary, agent or counselor in the sale or leasing of real
Estate, renting and management of real estate, brokerage of insur-
ance connected with the ownership and operation of real estate,
subdivision and development of real estate including erection of
dwellings thereon, making, negotiating and servicing of mortgages
on real estate, appraisal of real estate.
Land Development and Home Building Business.-Engagement as
principal or agent in the preparation and improvement of land for
dwelling sites and the erection, alteration or remodeling of dwellings
thereon.
Member.-Any individual, partnership, association, trust or cor-
10 portion subscribing to or coming under the control of this code.
National Land Development and Home Building Code Committee.-
SThe Committee charged with responsibility and authority to ad-
minister this code under the direction of the National Recovery
Administration.
P: Subcommittees.-Committees elected by cooperating associations,
responsible and subject to the National Land Development and
Pk Home Building Code Committee.
S Effective Date.-The second Monday after this code shall have
been approved by the President of the United States.
9128-33--2 (23)









ARTICLE 4--IAXIMUM HOURS, MINIMUM WAGES

On and after the effective date of this code, maximum hours and
rate of minimum wages shall be as follows:


Maxi Minimum weekly wage
mum
Occupation hours n50,000 Towns under 2,500
per Over -0, 2,500 to
week 50000 500,000250,000

Clericalemployees, not includingexec- 40 $15.00 $14.50 $14.00 $12.00 All wages in towns of
uti\vesl ess n 25 p
Junior office employees who are learn- 40 12.00 11.50 11.00 9.00 less than 2,500 pop-
ing the business, 19 to 20 years of age, ao be in
inclusivee creased by not less
Junior office employees who are learn- 40 10.00 9.50 9.00 7.00 than 20%0 provided
ilg the business, 16 to la years of age that this shall not
inclusive. require wages in ex-
Land development and land mainte- 40 15.00 14.50 14.00 12.00 cess of amounts
nance employees. shown in next col
Home building employees -...-- ..- ..- 40 16.00 15.60 15.20 14.80 u n to the left.

1. In the event that a state law specifies a lower maximum number
of hours or a higher minimum wage for any type or class of employees,
than is herein provided, no employees may be employed for more than
the maximum number of hours or for a wage which is less than the
minimum wage provided in such state law within that state.
2. When hours worked per week are less than maximum hours
shown, the minimum rate per hour shall be determined by dividing
the minimum rate per week by the maximum hours.
3. Employees may be employed in excess of maximum hours shown
in case of emergency maintenance and repair work if time and a third
is paid for all hours in excess of maximum.
4. In the District of Columbia and the following states: Maryland,
West Virginia, Virginia, North Carolina, South Carolina, Georgia,
Florida, Alabama, Mississippi, Louisiana, Texas, Oklahoma, Arkan-
sas, Tennessee, and Kentucky all rates shown shall be reduced by
10%.
5. Land-development, land-maintenance, and home-building em-
ployee's hours in excess of the maximum shown may be worked
at the regular rate per hour to compensate for time lost through
climatic conditions, provided that not over 8 hours in any day, 48
hours in any week, nor an average of over 40 hours per week any
six months' period shall be worked.
6. Due to seasonal variations, clerical- and junior-office employees
may be worked more than 40 hours per week but not to exceed 48
hours per week at regular wages, provided the total hours worked in
any 6 months' period shall not exceed an average of 40 hours per week.
7. Salesmen, solicitors, and rental men working a major part of
their time outside of the office, and building managers, caretakers,
or custodians, whose chief remuneration is free rent of quarters
occupied, are exempt under this code as to the provisions of hours
and wages.
8. The minimum rates of wages provided for herein shall not be'
interpreted so as to reduce wages now being paid which are in greater
amount than the minimum wage provisions of this code, even though
the hours of work are reduced.








ARTICLE 4-LABOR RELATIONS
Employees shall have the right. to organize and bargain collectively
through representatives of their own choosing, and shall be free from
the interference, restraint, or coercion of employers of labor, or their
agents, in the designation of such representatives or in self-organi.-
zation or in other concerted activities for the purpose of collective
bargaining or other mutual aid or protection.
No employee and no one seeking employment, shall be required as
a condition of employment to join any company union or to refrain
from joining, organizing, or assisting a labor organization of his own
choosing.
Employers shall comply \it.h the maximum hours of labor, mini-
mum rates of pay, and other conditions of employment approved or
prescribed by the President.
After the effective date no member shall employ any person under
sixteen years of age; provided, however, that. where a state law speci-
fies a higher minimum age, no person below the age so specified by
such law shall be employed within that state.
The right, of employer and employee to bargain together free from
interference by any third party shall not be affected by this code.

ARTICLE 5-GENERAL UNFAIR COMPETITIVE PRACTICES
Under this code the following practices shall be considered unfair:
1. Offering to transact or transacting business for a compensation
which is determined on a basis less than the established rates under
this code.
2. Paying coninissions or fees to or dividing commissions or fees
with other than members substantially engaged in activities as set
out. in Article 2.
3. Using any trade name or insignia of membership in any organ-
ization unless entitled to use it..
4. Acceptance of or charging any undisclosed commission, rebate,
-or profit, on expenditures made for a principal.
5. Seeking prospects or purchasers for real estate by offering the
public free lots, lottery, contest prizes or other similar inducements
without, adequate consideration therefore.
6. Acting in the dual capacity of agent and undisclosed principal
in any transaction.
7. Engaging in the practice known as bid peddling.

ARTICLE 6-COMMIISSIONS AND FEES
Uniform minimum commissions and fees shall be established by
local associations or subcommittees in accordance with local custom
and practice. If such schedules of minimum commissions and fees
established by local associations or subcommittees are submitted to
the National Land Development. and Home Building Code Com-
mittee and are by it. approved, they shall thereupon become a part of
this code. Until such commissions and fees shall have been so estab-
lished, the present. minimum schedules now in effect in the various
communities shall continue.








ARTICLE 7-COLLECTION OF DATA
The National Land Development and Home Building Code Com-
mittee shall have authority to make surveys and to compile such
reports as it may deem necessary for the accomplishment of the pur-
poses of the National Industrial Recovery Act. The Committee may
also collect such statistics and information as it may deem desirable
in order to develop recommendations for the improvement of real
estate interests and activities and may assess against all members,
equitably, the expenses incident to the administration of this code
under such rules and regulations as may be approved by the Presi-
dent under Section 10-A of Title I of the National Industrial Recovery
Act.
ARTICLE 8-GENERAL PROVISIONS
No provision of this code shall be interpreted or applied in such
manner as to promote a monopoly or to eliminate or oppress small
enterprises and will not operate to discriminate against them and will
tend to effectuate the policy of Title I.
This code may be amended from time to time by the National Land
Development and Home Building Code Committee subject to the
approval of the President.
The President may from time to time cancel or modify any order,
approval, license, rule, or regulation issued under Title I of the
N.I.R.A. and any of the provisions of this code shall from time to
time be cancelled or modified to the extent necessary to conform
thereto.
To the extent required or permitted by or under the provisions of
Title I of the National Industrial Recovery Act, the provisions of
this code shall apply to and be binding upon every member whether
or not the member shall have signed an agreement to comply with
this-code.
ARTICLE 9-ADMINISTRATION
The administration of this code shall be vested in a committee to
be known as the National Land Development and Home Building
Code Committee, which shall consist of six members, elected so as to
give representation to the various sections of the United States,
appointed by the Chairman of the Land Developers and Home
Builders Division of the National Association of Real Estate Boards.
and approved by the Board of Directors of the National Association
of Real Estate Boards. This Committee shall have the authority
and powers conferred upon it in this code and such other powers and
duties as may be necessary to administer the code, subject, how-
ever, to the approval of the General Real Estate Code Committee as
set up in the General Code Affecting Real Estate to which this code
is supplementary. The Committee may hear complaints against
members arising out of alleged violations of this code or of the Na-
tional Industrial Recovery Act and may cause such complaintsjto
be arbitrated and may initiate proceedings before the appropriate
governmental agencies to prevent or to punish such violations.
Subcommittees.-Subcommittees may be elected by local groups or
associations for specific purposes with the approval of the National
Land Development and Home Building Code Committee, which







27

committee shall appoint one of its own members as an ex officio
member of such subcommittee.

NATIONAL ASSOCIATION OF REAL ESTATE BOARDS,
Chicago, August 30, 1933.
NATIONAL RECOVERY ADMINISTRATION,
Control Division, Washington, D.C.
GENTLEMEN: In submitting this code of fair competition of the Land Develop-
ment and Home Building Business, the Land Developers and Home Builders
Division of the National Association of Real Estate Boards desires to call the
attention of the Administration to the peculiar conditions and problems con-
fronting this business.
The Land Developers and Home Builders Division is composed of those who
are the leaders in this branch of the real estate business and constitutes the
representative body of the whole National Association in this field and is repre-
sentative of the larger portion of the Land Development and Home Building
Business of the United States.
Attention is called to the fact that a code has been filed by the Construction
League covering the construction industry, which might be interpreted to include
the Home Building Business. Inasmuch as the Home Building Business has
always been largely composed of small business units and never has conformed
and cannot now conform to the standards of costs which are common to the
construction industry, it is believed that the inclusion of the Home Building
Business under any code other than one including its allied business, the develop-
ment of the site, will not only tend to oppress and destroy the business of those
now constituting it, but will place further and undesirable obstacles in the path
of home ownership.
Attention is also called to the fact that a code has been or shortly will be filed
by the Residential Contractors Association, and it is the desire of the Land
IDevelopment and Home Builders Division to cooperate fully in the final working
out of a code covering this branch of the business.
Particular attention is called to the attached copy of a letter of transmittal
of a general code affecting real estate, regarding the coordination of land develop-
ment and home building business and other interests and activities affecting
real estate, through this general code.
This Division pledges its utmost cooperation in the working out of any further
necessary details.
Very truly yours,
LAND DEVELOPERS AND HOME BUILDERS DIVISION,
NATIONAL ASSOCIATION OF REAL ESTATE BOARDS,
By Guy T. O. HOLLYDAY, Chairman.




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CODE OF FAIR COMPETITION FOR THE PROFESSION AND
BUSINESS OF REAL-ESTATE APPRAISING
A SUPPLEMENTARY CODE UNDER THE GENERAL CODE AFFECTING
REAL ESTATE FILED BY THE NATIONAL ASSOCIATION OF REAL-
ESTATE BOARDS
ARTICLE 1-PURPOSE
This code is established in order to effectuate the policy of Title I
of the National Industrial Recovery Act, by increasing purchasing
power through the payment of fair wages to employees, by limiting
hours of labor, increasing, spreading, and sustaining employment,
eliminating unfair practices, and restoring prosperity to all those
concerned.
This code is one of a number of supplementary codes covering
various divisions of the real-estate business. It has been filed as a
supplementary code to assist the Administration in bringing together
under one coordinated plan the various national groups and associa-
tions of interests and activities affecting real estate.

ARTICLE 2-DEFINITIONS
Real Estate.-Land, land and improvements, or improvements.
Interests and Actirities.-Operation of real estate, by an owner to
which this code is applicable and the substantial engagement as
principal, fiduciary, agent, or counselor in the sale or leasing of real
estate, renting and management of real estate, brokerage of insurance
connected with the ownership and operation of real estate, subdivision
and development of real estate, including erection of dwellings
thereon, making, negotiating, and servicing of mortgages on real
estate, appraisal of real estate.
Real-Estate Appraisal.-A determination of the utility, price, or
value of real estate or an interest therein.
Profession of Real-Estate Appraising.-Engagement in making real
estate appraisals for others for a fee, by an individual w'ho has qualified
under the standards and subjected himself to the regulations and
discipline of a representative professional society such as the Ameri-
can Institute of Real-Estate Appraisers of the National Association
of Real-Estate Boards.
Business of Real-Estate Appraising.-Substantial engagement in
the making of real-estate appraisals for others for a fee, on the part of
any individual, partnership, firm, association, trust, or corporation.
Member.-Any individual engaged in the profession, or any indi-
vidual, partnership, firm, association, trust, or corporation engaged
in the business of real-estate appraising who subscribes to or comes
under the control of this code.
(29)







30

National Real-Estate Appraisal Code Committee.-The Committee
charged with responsibility and authority to administer this code
under the direction of the National Recovery Administration.
Subcommittees.-Commnittees appointed by cooperating associa-
tions, responsible and subject to the National Real-Estate Appraisal
Code Committee.
Effective Date.-The second Monday after this code shall have been
approved by the President of the United States.

ARTICLE 3-M- MAXIMUM HOURS, MINIMUM WAGES

On and after the effective date of this code, maximum hours and
iate minimum wages shall be as follows:

SMinimum weekly wage
Maxi-
Occupation hmus Towns under 2,500
per Over 250,000 2,500
to to
week 500,000 500,000 250,000

Clerical employees and field men, 40 $15.00 $14.50 $14.00 $12.00 All wages in towns of less
not including executives, than 2,500 population
Junior officeemployees whoarelearn- 40 12.00 11.50 11.00 9.00 to be increased by not
ing the business, 19 to 20 years of less than 20%, provided
age, incl. that this shall not re-
Junior office employees who are 40 10.00 9.50 9.00 7.00 quire wages in excess of
learning the business, 16 to 18 years amounts shown in next
of age. incl. column to the left.

1. In the event that a state law specifies a lower maximum number
of hours or a higher minimum wage for any type or class of employees,
than is herein provided, no employees may be employed for more
than the maximum number of hours or for a wage which is less than
the minimum wage provided in such state law within that state.
2. In the District of Columbia and the following states, Maryland,
West Virginia, Virginia, North Carolina, South Carolina, Georgia,
Florida, Alabama, Mississippi Louisiana, Texas, Oklahoma, Arkansas,
Tennessee, and Kentucky, all rates shown shall be reduced by 10%.
.3. Due to seasonal variations, clerical and junior office employees
may be worked more than 40 hours per week but not to exceed 48
hours per week at regular wages provided the total hours worked in
any 6 months period shall not exceed an average of 40 hours per week.
4. The minimum rates of wages provided for herein shall not be
interpreted so as to reduce wages now being paid which are in greater
amount than the minimum wage provisions of this code, even though
the hours of work are reduced.

ARTICLE 4-LABOR RELATIONS

Employees shall have the right to organize and bargain collectively
through representatives of their own choosing, and shall be free from
the interference, restraint, or coercion of employers of labor, or their
agents, in the designation of such representatives or in self-organiza-
tion or in other concerted activities for the purpose of collective
bargaining or other mutual aid or protection.
No employee and no one seeking employment shall be required as
a condition of employment to join any company union or to refrain






31

from joining, organizing, or assisting a labor organization of his own
choosing.
Employers shall comply with the maximum hours of labor, minimum
rates of pay, and other conditions of employment approved or pre-
scribed by the President.
After the effective date no member shall employ any person under
sixteen years of age; provided, however, that where a state law speci-
fies a higher minimum age no person below the age so specified by
such law shall be employed within that state.
The right of employer and employee to bargain together free from
interference by any third party shall not be affected by this code.

ARTICLE 5-STANDARDS OF UNFAIR AND FAIR PRACTICES

CONTINGENT FEES
SECTION 1. It is unethical for an appraiser to accept an order to
appraise a property if his employment or fee is contingent upon his
reporting a predetermined or specified amount of value or is other-
wise contingent upon any finding to be reported.
SEC. 2. It is unethical for an appraiser retained in cases where
damages result from the exercise of the right of eminent domain, or
result because of fraud, misrepresentation, etc., to make his compen-
sation contingent upon the amount of, or to fix his compensation as
a percentage of the damages which may be decreed by the Court
deciding the issues in the case involved.
SEC. 3. It is unethical for an appraiser to accept an assignment to
appraise a property when such assignment involves a bonus, a favor,
or any special inducement other than a fair professional fee for the
responsibility entailed and the work and expense involved.

DISINTERESTED APPRAISALS
SECTION 1. It is unethical for an appraiser to issue an appraisal
report if he is acting or intending to act in capacity of broker, loan
broker, or manager, or if he has an ownership, contemplated future
ownership, or any other interests in connection with the property
appraised, unless such interest or interests be fully disclosed in the
appraisal certificate.
INDEPENDENT APPRAISALS
SECTION 1. It is unethical for appraisers who have been retained to
make independent appraisals of a property to collaborate or consult
with one another with reference to the appraisal, or to make use of
the findings or figures developed or reported by any appraiser so
retained.
SEC. 2. It is unethical for appraisers who have been retained to
collaborate in the making of an appraisal to issue separate appraisal
reports on the property appraised. They should sign a joint report,
or if there be dissenting opinions these opinions should be stated in
the report rather than in separate documents apart from the report.








HYPOTHETICAL APPRAISALS
SECTION 1. It is unethical for an appraiser to issue an appraisal
report with the value predicated on assumed rentals and expenses at
variance with his best judgment of the probable market at the time
at which the reported value obtains.
SEC. 2. It is unethical for an appraiser to issue an appraisal report
on an investment property based on an earning expectancy which
does not analyze and take note of existing leases.
SEC. 3. It is unethical for an appraiser to issue an appraisal report
in which the reported value is based on the completion of public or
private improvements which are not assured unless he clearly states
that the appraisal is made on that hypothesis. Provided that, in any
event, he must state in his report the conditions with regard to such
improvements which he assumes in determining the value reported.
SEC. 4. It is unethical for an appraiser to issue an appraisal report
in which the reported value is based on the assumed absence of any
legal restriction, unless such assumption is reasonable or in accord
with legal opinion accepted by the appraiser, and unless the legal
authority and his opinion are quoted in the appraisal certificate, and
it. is expressly stated that the appraisal is contingent on such lawful
restriction being changed or absent in accordance with the assumption.

FRACTIONAL APPRAISALS
SECTION 1. It is unethical for an appraiser to issue an appraisal
report on a fractional part of a property unless he specifically states
that the value reported is invalidated if used in making a summation
appraisal of the property as a whole.
SEC. 2. In appraising the security for a loan it is unethical for an
appraiser to issue a certificate covering anything less than all of the
property designated as security for the loan.
SEC. 3. In particular, in appraising the security for a lease-hold
loan, it is unethical for an appraiser to issue a certificate of value of
the improvement only, omitting the value of the leasehold, which
latter may be positive, zero, or negative.

SUMMATION APPRAISALS
SECTION 1. It is unethical for an appraiser to issue an appraisal
report on a property in which the total reported value is derived by
adding together the values of fractional parts of the property unless
it is shown that no incompatible conditions were assumed in making
the fractional appraisals.
SEC. 2. In particular, in appraising the security for a loan, the
market price, market value, or other economic value of a property, it
is unethical for an appraiser to issue an appraisal report on a property
in which the total reported value is derived by adding together tTe
market value of the land (or leasehold) as if unimproved, or the value
of the land (or leasehold) as if improved to the highest and best use,
and the reproduction cost of the improvements less accrued structural
depreciation, unless other and conclusive evidence is given that this
result equals the total value of the property considered as a unit.








SEC. 3. The restrictions of sections 1 and 2 immediately above do
not apply where the appraisal report clearly states that the valuation
is for the purpose of replacement or physical cost such as for fire-in-
surance purposes, re-creation of equivalent physical units, or the like.

ECONOMIC PROBABILITIES AND VALUE OF INVESTMENT PROPERTY
SECTION 1. It is unethical for an appraiser to issue an appraisal
report on a construction project, which does not give the appraiser's
opinion of the economic soundness of the project.
SEC. 2. It is unethical for an appraiser to issue an appraisal report
on an investment construction project without also reporting the
assumed date of normal occupancy, his estimate of the reasonably
expected earnings of the project upon completion as well as upon at-
taining the assumed normal average occupancy, and his estimate of
net earnings or deficits during the period from completion to normal
occupancy.
SEC. 3. If the value reported is the value which in the opinion of the
appraiser will prevail when normal occupancy is attained, it is unethi-
cal for the appraiser to report the value as of any other than the date
when it is assumed such normal occupancy will have been attained.

DUTY TO HOLD FINDINGS CONFIDENTIAL
SECTION 1. It is the duty of an appraiser to hold as confidential the
fact that he has been employed to make an appraisal, his results and
other findings, until released from his obligation by the client or by due
process of law.
EXPERT TESTIMONY
SECTION 1. In giving testimony as to the value of real property in
any court or before any other legally constituted tribunal, an appraiser
may follow rules of procedure as to appraisal method legally binding
in that jurisdiction even though such rules may be at variance with
the provision of these Standards.

PROFESSIONAL IDENTIFICATION
SECTION 1. It is unethical to use any trade name or insignia of
membership in any organization unless entitled to use it. It is
ethical to use the words "Certified Appraiser" or other title of
similar purport unless the source of such certification or other identi-
fication be disclosed at the same time.

CONTENTS OF APPRAISAL CERTIFICATES
SECTION 1. It. is unethical for an appraiser to omit any of the follow-
ing from his appraisal certificate:
(1) An unequivocal identification and reasonably complete descrip-
tion of the property appraised.
(2) A statement of any contingent, assumed, or nonexisting condi-
tions upon which the appraisal has been based. For example: The
validity of legal, engineering, or auditing opinions used; the comple-
tion of projected public or private improvements; new improvements
to be erected or remodeling to be done; and the like.






34

(3) The date or time at which the value obtains.
(4) The amount of the value.
(5) A statement that the undersigned appraiser has no present or
contemplated future interest in the property appraised; or a statement
disclosing all such interests which the undersigned appraiser may
have in the property appraised.
(6) A statement that the appraiser's compensation and employment
are not contingent upon the amount of the value reported, nor are
either contingent upon the amount of damages or other benefits
resulting from awards by arbitrators, through judicial decree, mort-
gage, or other advances, and the like-except as may be fully set forth
in the report.
(7) In case the property appraised is a fractional part of the prop-
erty of a type covered by this code, a statement that the value reported
is invalidated if used in making a summation appraisal of the property
as a whole.
(8) A signature clearly and definitely placing the responsibility for
any statements or opinions and for the valuation given.

ARTICLE 6-COMMISSIONS AND FEES
Uniform minimum fees shall be established by local associations or
subcommittees in accordance with local custom and practice. If
such schedules of minimum fees established by local associations or
subcommittees are submitted to the National Real Estate Appraisal
Code Committee and are by it approved, they shall thereupon become
a part of this code. Until such fees shall have been so established, the
present minimum schedules now in effect in the various communities
shall continue.
ARTICLE 7-COLLECTION OF DATA
The National Real Estate Appraisal Code Committee shall have
authority to make surveys and to compile such reports as it may
deem necessary for the accomplishment of the purposes of the National
Industrial Recovery Act. The Committee may also collect such
statistics and information as it may deem desirable in order to de-
velop recommendations for the improvement of real-estate interests
and activities and may assess against all members, equitably, the
expenses incident to the administration of this code under such rules
and regulations as may be approved by the President under Section
10-A of Title I of the National Industrial Recovery Act.

ARTICLE S-GENERAL PROVISIONS
No provisions of this code shall be interpreted or applied in such
manner as to promote a monopoly or to eliminate or oppress small
enterprises and will not operate to discriminate against them and will
tend to effectuate the policy of Title I.
This code may be amended from time to time by the National
Real Estate Appraisal Code Committee subject to the approval of
the President.
The President may from time to time cancel or modify any order,
approval, license, rule, or regulation issued under Title I of the
National Industrial Recovery Act and any of the provisions of this

'-v








code shall from time to time be cancelled or modified to the extent
necessary to conform thereto.
To the extent required or permitted by or under the provisions of
Title I of the National Industrial Recovery Act, the provisions of
this code shall apply to and be binding upon every member whether
or not the member shall have signed an agreement to comply with
this code.
ARTICLE 9-ADMINISTRATION

The administration of this code shall be vested in a committee to
be known as the National Real Estate Appraisal Code Committee,
which shall consist of six members, elected so as to give representation
to the various sections of the United States, from nominations made
by the President of the American Institution of Real Estate Appraisers
of the National Association of Real Estate Boards and approved by
the Board of Directors of the National Association of Real Estate
Boards. This Committee shall have the authority and powers con-
ferred upon it in this code and such other powers and duties as may
be necessary to administer the code, subject however to the approval
of the General Real Estate Code Committee as set up in the General
Code Affecting Real Estate to which this Code is supplementary.
The Committee may hear complaints against members arising out
of alleged violations of this code or of the National Industrial Recovery
Act and may cause such complaints to be arbitrated and may initiate
proceedings before the appropriate governmental agencies to prevent
or to punish such violations.
Subcommittees.-Subcommittees may be appointed by local groups
or associations for specific purposes with the approval of the National
Real Estate Appraisal Code Committee, which committee shall
appoint one of its own members as an ex-officio member of such
subcommittee.
NATIONAL ASSOCIATION OF REAL ESTATE BOARDS,
August 29, 1933.
NATIONAL RECOVERY ADMINISTRATION,
Control Division, Washington, D.C.
GENTLEMEN: In submitting this code of fair competition for the profession
and business of real estate appraising the American Institute of Real Estate
Appraisers of the National Association of Real Estate Boards desires to call the
attention of the Administration particularly to the following:
The American Institute of Real Estate Appraisers is a professional organiza-
tion requiring its members to qualify under high standards and to subject them-
selves to regulation and discipline. So far as is known to the Institute it is the
only organization or society covering the field of real-estate appraising in the
United States. It believes that it is representative of the highest type of indi-
vidual Real Estate Appraisers, who in a professional capacity, appraise real
estate.
Although we believe that professional occupations are exempt from the pro-
visions of the N.I.R.A., there is a growing business which involves the employ-
ment of clerical help, that through the use of standardized methods makes
appraisals on what might be termed a "wholesale" basis, which probably should
come under the provisions of the N.I.R.A. and it is to cover this field that this
code is presented.
The establishment of definite and adequate standards of practice and ethics
in this profession and business is of major importance to all allied interests
and activities affecting Real Estate and it is hoped that the standards set out in
this code will receive the careful consideration of the Administration at the proper
time.
Particular attention is called to the copy of a 'letter of transmittal accom-
panying the General Code affecting Real Estate, to which the Appraisers' Code
is supplementary.






36

This Institute desires to cooperate with any other interest when it becomes
proper and necessary to complete the details of a code for the Appraisal business.
Very truly yours,
AMERICAN INSTITUTE OF REAL ESTATE APPRAISERS
OF THE NATIONAL ASSOCIATION OF REAL ESTATE BOARDS,
By PHILIP W. KNISKERN, President. i

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Full Text

PAGE 1

Registry No. 1743-16 NATIONAL RECOVERY ADMINISTRATION PROPOSED CODE OF FAIR COMPETITION FOR THE REAL ESTATE BUSINESS REAL ESTATE AND INSURANCE BROKERAGE BUSINESS REAL ESTATE AND BUILDING MANAGEMENT BUSINESS REAL ESTATE MORTGAGE BUSINESS LAND DEVELOPMENT AND HOME BUILDING BUSINESS REAL ESTATE APPRAISING BUSINESS AS SUBMITTED ON SEPTEMBER 1, 1933 The Code for the Real Estate Trade in its present form merely reflects the proposal of the above-mentioned industry, and none of the provisions contained therein are to be regarded as having received the approval of the National Recovery Administration as applying to this industry UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1933 For sale by the Superintendent of Documents, Washington, D.C. • • • • • --Price 5 cents

PAGE 2

SUBMITTED BY NATIONAL ASSOCIATION OF REAL ESTATE BOARDS (II)

PAGE 3

• TABLE OF CONTENTS Letter of Transmitta l and General Code Affecting Real Ei::tate _________ _ Supplementary Codes : Letter of Transmitta l and Real Estate and Insurance Brokerage Busi-nes s Code _______________________ _ _________________________ _ Letter of T ran. mittal and Real Estate and Building Management Business Code _____________________________ ____ ____________ _ Letter of Transmitta l and Real Estate Mortgage Business Code ____ _ Letter of Transmittal and Land Development and Home Building Business Code _ ____________________________________________ _ Letter of Transmittal and Code for the Profession and Business of Real Estate A pp raising ______________ _ ______________________ _ (ill) Page 1 5 11 17 23 29

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• Digitized by the Internet Archive in 2011 with funding from University of Florida, George A. Smathers Libraries with support from LYRASIS and the Sloan Foundation http://www.arc hive .org/detai ls/proposedcodeoffa 7365 unit

PAGE 5

NATIONAL ASSOCIATION OF REAL ESTATE BOARDS, . Chicago, August 30, 1933. NATIONAL RECOVERY ADMINISTRATION, Control Division, Washington, D.C. GENTLEMEN: In submitting a General Code Affecting Real Estate, and supplementary codes for its several divisions, the National Association of Real Estate Boards has endeavored to cover the activities of its own membership and, in addition, to provide a basis upon which other associations or groups having similar or allied interests and activities might cooperate for the best interests of all. The definition of representation on the General Code Committee and the methods of the election of its members have been temporarily omitted until such time as they can be worked out between the interested groups and the Administration. Real estate has frequently been estimated to comprise at least one half of our national wealth. In spite of its importance, however, real-estate methods are generally unstandardized. The National Association of Real Estate Boards is the only articulate nation-wide body representing real estate in all of its branches. The Association believes that a great opportunity exists at this time to standardize and coordinate the work that it is doing and the work that is being done by several other national associations covering important but restricted fields, such as the National Association of Building Owners and Managers, Mortgage -Bankers Association of America, the National Association of Apartment House Owners, and others. Because of lack of coordination, there has not been sufficient planning with respect to the production of improvements and their adjustment to current needs. As a consequence we have periods of feast and famine. Lack of coordination has also produced costs that are frequently excessive and that are an obstacle to home ownership. The present crisis offers an opportunity for the major interests and activities in the real-estate field to work together for more intelligent development of sites, better planning and construction, sounder financing methods, and more productive management. In addition to this General Code the Association has filed five supplementary codes, covering the fields of land development and home building, mortgage financing, brokerage, management, and appraising. With each of these codes is a letter of transmittal outlining briefly the particular problems which exist in that field. The problems outlined in these letters can not be solved separately but only in the light of their relationship to one another and the whole field of realestate activity. We believe this General Code offers the framework within which such solutions can be worked out. Very truly yours, NATIONAL ASSOCIATION OF REAL ESTATE BOARDS, By W. C. MILLER, President, J. W. CREE, Jr., Chairman Code Committee. (V)

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GENERAL CODE AFFECTING REAL ESTATE ARTICLE I-PURPOSE This code is established in order to effectuate the policy of Title I of the National Industrial Recovery Act, by increasing purchasing power through the payment of fair wages to employees, by limiting hours of labor, increasing, spreading, and sustaining employment, eliminating unfair practices, and restoring prosperity to all those concerned. ARTICLE 2-DEFINITIONS Real Estate.-Land, land and improvements, or improvements. Interests and activities.-Operation of real estate, by an owner, to which this code is applicable and the substantial engagement as prin cipal, fiduciary, agent or counselor in the sale or leasing of real estate, renting and management of real estate, brokerage of insurance con nected with the ownership and operation of real estate, subdivision and development of real estate including erection of dwellings thereon, making, negotiating, and servicing of mortgages on real estate, and appraisal of real estate. Member.-Any individual, partnership, association, trust, or corporation subscribing to or coming under the control of this code. General Real Estate Code Committee.-The Committee charged with responsibility and authority to administer this code under the direc tion of the National Recovery Administration. Subcommittees.-Committees elected by cooperating groups or associations, responsible and subject to the General Real Estate Code Committee. Effective Date.-The second Monday after this code shall have been approved by the President of the United States. ARTICLE 3-SUPPLEMENTARY CODES Supplementary codes of fair competition may be prepared and incorporated in this code when approved by the General Real Estate Code Committee and the National Recovery Administration for the following divisions and any other divisions that may be developed: 1. Brokerage of Real Estate and of Insurance connected with the ownership and operation of Real Estate. 2. Real Estate and Building Management. 3. Making, Negotiating, and Servicing of Mortgages . 4. Land Development and Home Building. 5. Real Estate Appraising. (1)

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2 ARTICLE 4-MAXIMUM HOURS, MINIMUM WAGES On and after the effective date of this code, maximum hours and rate of minimum wages shall be as follows: Maxi-Minimum weekly wage mum Occupation hours 250,000 2,500 Towns under 2,500 per Over to to week 500,000 500,000 250,000 ------Clerical employees, not including 40 $15.00 $14.50 $14.00 $12.00 executives. Junior office employees who are 40 12.00 11. 50 11. 00 9.00 learning the business, 19 to 20 All wages in towns of less years of a g e, inclusi v e . Junior office employees who are 40 10.00 9.50 9.00 7.00 than 2,500 population learning the bus iness, 16 to 18 to be increased by not yea r s of ag e, inclu s i v e. less than 20% provided Office-building and business-prop-48 15.00 14.50 14.00 12.00 that this shall not re-quire wages in excess erty oper ating employees. of amounts shown in Apartment-, industrial-, and loft-54 15.00 14.50 14.00 12.00 next column to the building-oper a ting employees work left. ing regul a r con secutive hours. Land-development and l and-main-40 15.00 14.50 14.00 12.00 tena nce employees. Home-building employees ___________ 40 16.00 15.60 15.20 14.80 1. In the event that a state law specifies a lower maximum number of hours or a higher minimum wage for any type or class of employees than is herein provided, no employees may be employed for more than the maximum number of hours or for a wage which is less than the minimum wage provided in such state law within that state. 2. When hours worked per week are less than maximum hours shown, the mirumum rate per hour _ shall be determined by dividing the minimum rate per week by the maximum hours. 3. Employees may be employed in excess of maximum hours shown in case of emergency maintenance and repair work if time and a third is paid for all hours in excess of maximum. 4. In the District of Columbia and the following states, Maryland, West Virginia, Virginia, North Carolina, South Carolina, Georgia, Florida, Alabama, Mississippi, Louisiana, Texas, Oklahoma, Arkansas, Tennessee, and Kentucky, all rates shown shall be reduced by 10%. 5. Land-development, land-maintenance, and home-building em ployees' hours in excess of the maximum shown may be worked at the regular rate per hour to compensate for time lost through climatic conditions, provided that not over 8 hours in any day, 48 hours in any week, nor an average of over 40 hours per week any six months period shall be worked. 6. Due to seasonal variations, clerical and junior office employees may be worked more than 40 hours per week, but not to exceed 48 hours per week at regular wages provided the total hours worked in any 6 months period shall not exceed an average of 40 hours per week. 7. Salesmen, solicitors, and rental men working a major part of their time outside of the office, and building managers, caretakers, or custodians, whose chi e f remuneration is free rent of quarters occupied, are exempt under this code as to the provisions of hours and wages. 8. Apartment employees, including janitors, managers, custodians, caretakers, and others whose duties are such that they cannot work consecutive hours but require intermittent attendance, and watchmen

PAGE 9

3 of all kinds shall not be subject to any maximum hours limitation, but shall have their present wages increased by not less than twenty percent, provided that this shall not require wages in excess of the minimum set out above for consecutive hours apartment operating employees for cities of different sizes. ARTICLE 5-LABOR RELATIONS Employees shall have the right to organize and barga in collectively through representatives of their own choosing, and shall be free from the interference, restraint, or coercion of employers of labor, or their agents, in the designation of such representatives or in self-organiza tion or in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. No employee and no one seeking employment shall be required as a condition of employment to join any company union or to refrain from joining, organizing or assisting a labor organization of his own choosing. Employers shall comply with the maximum hours of labor, minimum rates of pay and other conditions of employment, approved or prescribed by the President. After the effective date no member shall employ any person under sixteen years of age; provided, however, that where a state law speci fies a higher minimum age, no person below the age so specified by such law shall be employed within that state. The right of employer and employee to bargain together free from interference by any third party shall not be affected by this code. ARTICLE 6~GENERAL UNFAIR COMPETITIVE PRACTICES Under this code any of the practices contained in the supplementary codes of the several divisions of Real Estate, now filed or as subsequently filed or amended, shall be considered unfair and shall constitute a violation of this code. ARTICLE 7-COMMISSIONS AND FEES Uniform minimum commissions and fees shall be established by local associations or subcommittees in accordance with local custom and practice. If such schedules of minimum commissions and fees established by local associations or subcommittees are submitted to the General Real Estate Code Committee and are by it approved, they shall thereupon become a part of this code. Until such commissions and fees shall have been so established, the present minimum sched ules now in effect in the various communities shall continue. ARTICLE 8-COLLECTION OF DATA The General Real Estate Code Committee shall have authority to make surveys and to compile such reports as it may deem necessary for the accomplishment of the purposes of the National Industrial ~ecover~ Act .. The Committee may also collect such statistics and mformat10n as 1t may deem desirable in order to develop recommenda tions for the improvement of real estate interests and activities and may assess against all members, equitably, the expenses incident to

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4 the administration of this code under such rules and regulations as may be approved by the President under Section 10-Z of Title I of the National Industrial Recovery Act. ARTICLE 9-GENERAL PROVISIONS No provisions of this code shall be interpreted or applied in such manner as to promote a monopoly or to eliminate or oppress small enterprises and will not operate to discriminate against them and will tend to effectuate the policy of Title I. This code may be amended from time to time by the General Code Committee subject to the approval of the President. The President may from time to time cancel or modify any order, approval, license, rule, or re gulation issued under Title I of the N .I.R.A. and any of the provisions of this code shall from time to time be cancelled or modified to the extent necessary to conform thereto. To the extent required or permitted by or under the provisions of Title I of the National Industrial Recovery Act, the provisions of this code shall apply to and be binding upon every member whether or not the member shall have signed an agreement to comply with this code. ARTICLE 10-ADMINISTRATION The Administration of this code shall be vested in a committee to be known as the General Real Estate Code Committee, which shall consist of representatives elected so as to give representation to the interests and activities involved and to the various sections of the United States. (Number of members and methods of appointment or election to be added as soon as the details can be worked out by the cooperating groups or associations, and approved by the Administration). This Committee shall have the authority and powers conferred upon it in this code and such other powers and duties as may be necessary to administer the code. The Committee may hear complaints against members arising out of alleged violations of this code or of the National Industrial Recovery Act and may cause such con1pla.ints to be arbitrated and may initiate proceedings before the appropriate governmental agencies to prevent or to punish such violations. Subcommittees.-Subcommittees may be appointed by local groups or associations for specific purposes with the approval of the General Real Estate Code Committee, which committee shall appoint one of its own members as an ex-officio member of such subcommittee.

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CODE OF FAIR COMPETITION FOR THE REAL ESTATE AND INSURANCE BROKERAGE BUSINESS A SUPPLEMENTARY CODE UNDER THE GENERAL CODE AFFECTING REAL ESTATE FILED BY THE NATIONAL ASSOCIATION OF REALEST ATE BOARDS ARTICLE 1-PURPOSE This code is established in order to effectuate the policy of Title I of the National Industrial Recovery Act, by increasing purchasing power through the payment of fair wages to employees, by limiting hours of labor, increasing, spreading, and sustaining employment, eli1ninating unfair practices, preventing the destruction of capital assets, and restoring prosperity to all those concerned. This code is one of a number of supplementary codes covering various divisions of the real-estate business. It has been filed as a supplementary code to assist the Administrati on in bringing together under one coordinated plan the various national groups and associa tions of interests and activitie s affecting real estate. ARTICLE 2 -DEFINITIONS Real Estate.-Land, land and improvements, or improvements. Insurance.-All forms of insurance pertaining to the ownership and operation of real estate. Brokerage business.-The selling or buying of real estate or interests therein for others for a commission or fee, or the counselling and advising on matters pertaining to real estate for a fee, or the leasin g or renting of real estate for a commission or fee, or the selling of insurance for a commission or fee. Member.-Any individual, partnership, association, trust, or corporation subscribing to or coming under the control of this code. Interests and activities.-Operation of real estate by an owner, to which this code is applicable, and the substantial engagement as principal, fiduciary, agent, or counsellor in the sale or leasing of real estate; renting and management of real estate; brokerage of insurance connected with the ownership and operation of real estate; subdivision and development of real estate, including erection of dwellings thereon; making, negotiating, and servicing of mortgages on real estate; and the appraisal of real estate. National Real Estate and Insurance Brokerage Code Committee.The. Qommittee charged with the responsibility and authority to administer this code under the direction of the National Recovery dministration. Subcommittees .-Committees elected by local groups or associations responsible and subject to the National Real Estate and Insnrance Brokerage Code Committee. (5)

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6 ARTICLE 3-MAXIMUM HOURS, MINIMUM WAGES On and after the effective date of this code, maximum hours and rate of minimum wages shall be as follows: Maxi-Minimum weekly wage Occup atio n mum Towns under 2,500 hrs. per 250,000 week Over to 2,500 to 500,000 500 , 000 250,000
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7 from joining, organizing, or assisting a labor organization of his own choosing. Employers shall comply with the maximum hours of labor, minimum rates of pay, and other conditions of employment approved or prescribed by the President. After the effective date no member shall employ any person under sixteen years of age; provided, however, that where a state law specifies a higher minimum age, no person below the ago so specified by such law shall be employed within that state. The right. of employer and employee to bargain together free from interference by any third party shall not be affected by this code. ARTICLE 5 .-GENERAL UNFAIR COMPETITIVE PRACTICES Under this code the following practices shall be considered unfair: 1. Offering to transact or transacting business for a compensation which is determined on a basis less than the established rates under this code. 2. Paying commissions or fees to or dividing commissions or fees with other than members substantially engaged in activities as set out in Article 2. 3. Using any trade nan1e or insignia of membership in any organization unless entitled to use it. 4. Acceptance of or charging any undisclosed commission, rebate, or profit on expenditures made for a principal. 5. Seeking prospects or purchasers for real estate by offering the public free lots, lottery, contest priz es, or other similar inducements without adequate considerat10n therefore. 6. Acting in the dual capacity of agent and undisclosed principa l in any transaction. ARTICLE 6-COMMISSIONS AND FEES Uniform minimum commissions and fees shall be established by local associations or subcommittees in accordance with local custom and practice. If such schedules of minimum commissions and fees established by local associations or subcommittees are submitted to the National Real Estate and Insurance Brokerage Code Committee and are by it approved, they shall thereupon become a part of this code. Until such commissions and fees shall have been so established, the present minimum schedules now in effect in the various communities shall continue. ARTICLE 7-COLLECTION OF DATA The National Real Estate and Insurance Brokerage Code Con1-mittee shall have authority to make surveys and to compile such reports as it may deem necessary for the accomplishment of the purposes of the National Industria l Recovery Act. The Committee may also collect such statistics and information as it may deem desirable in order to develop re con1mendat ions for the improvement of real_ estate interests and activities and may assess against all membersr eqmtably, the expenses incident to the administration of this code under such rules and regulations as may be approved by the President under Section 10-A of Title I of the National Industrial Recovery Act.

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8 ARTICLE 8-GENERAL PROVISIONS No prov1s10n of this code shall be interpreted or applied in such manner as to promote a monopoly or to eliminate or oppress small enterprises and will not operate to discriminate against thein and will tend to effectuate the policy of Title I. This code may be amended from time to time by the National Real Estate and Insurance Brokerage Code Comnuttee subject to the approval of the President. The President may from time to time cance l or modify any order, approval, license, rule, or regulation issued under Title I of the T .I.R.A., and any of the provisions of this code shall from time to time be cancelled or modified to the extent nece sary to conform thereto. To the extent required or permitted by or under the provisions of Title I of the National Industrial Recovery Act, the provisions of this code shall apply to and be binding upon every me1nber whether or not the member shall have signed an agreement to comply with this code. ARTICLE 9-ADMINISTRATION The administration of this code shall be vested in a committee to be known as the National Real Estate and Insurance Brokerage Code Committee, which shall consist of s ix members, elected so as to give representation to the various sections of the United States, appointed by the Chairman of the Brokers Division of the National Association of Real Estate Boards and approved by the Board of Directors of the ational Association of Real Estate BoardJs . This Committee shall have the authority and powers conferred upon it in this code and such other powers and duties as may be necessary to administer the code, subject however to the approval of the General Real Estate Code Con1mittee as set up in the General Code Affecting Real Estate to whi c h this Code is supplementary. The Committee may hear complaints agajnst meinbers arising out of alleged violations of this code or of the ational Industrja} Recovery Act and n1ay cause such complaints to be arbitrated and may initiate proceedings before the appropriate governmental agencies to prevent or to punish such violations. Subcommittees.-Subcommittees may be appointed by local asso ciations for specific purposes, with the approval of the National Real Estate and Insurance Brokerage Code Committee, which committee shall appoint one of its own members as an ex-officio 1nember of such subcommittee. NATIONAL ASSOCIATION OF REAL ESTATE BOARDS, Chicago, August 30, 1933. NATION AL RECOVERY ADMINISTRATION' Control Division, Washington, D. C. GENTLEMEN: In submitting this code of fair competition for the Real Estate and Insurance Brokerage Business, the Brokers Division of the National Association of Real Estate Boards desires to call the attention of the Administration to the fact that during the past five years the business of real estate brokerage has shrunk until today it i s approximately only 10 % of the 1928 volume, as shown by the tabulation of an exhaustive questionnaire sent to nearly 12,000 members of the National Association of Real Estate Boards in 502 cities of the United States.

PAGE 15

9 Insurance, limited to that type of insurance which is written in connection with the ownership or operation of real estate, has for many years b ee n handled by practically all real estate brokers. It is universally and necessarily a function < of the real estate broker and for that reason it has been included in this code. The Brokers Division of the National Association of Real Estate Boards is comprised of the national leaders in t his branch of the business and constitute the representative body of the whole Association in this field. Particular attention is called to the copy of a letter of transmittal accompanying the General Code affecting Real Estate, to which the Appraisers' Code is supplementary. Although at this time, in almost every case, the increased wages required by :the code submitted must come out of capital and not out of earnings, and al• though because of the service nature of the real estate business most of its
PAGE 17

CODE OF FAIR COMPETITION FOR THE REAL ESTATE AND BUILDING MANAGEMENT BUSINESS A SUPPLEMENTARY CODE UNDER THE GENERAL CODE AFFECTING REAL ESTATE FILED BY THE NATIONAL ASSOCIATION OF REAL ESTATE BOARDS ARTICLE I-PURPOS E This code is established in order to effectuate the policy of Title I of the ational Industrial Recovery Act, by increasing purchasing power through the payment of fair wages to employees, by limiting hours of labor, increasing, spreading, and sustaining employment, eliminating unfair practices, preventing the destruction of capital assets, and restoring prosperity to all those concerned. This code is one of a number of s'-:pplementary codes covering various divisions of the real estate busin e ss. It has been filed as a supplementary code to assist the Administr a tion in bringing together under one coordinated plan the various national groups and associa tions of interests and activities affecting real estate. ARTICLE 2-DEFINITIONS Real Estate.-Land, land and improvements, or improvements. Real-Estate Management Busi n e s s.-The leasing, renting, and management of real estate. Interests and Activities.-Operation of real estate by an owner to which this code is applicable and the substantial engagement as principal, fiduciary, agent or councillor in the sale or leasing of real estate, renting and management of real estate, brokerage of insurance connected with the ownership and operation of real estate, subdivi sion and development of real estate including erection of dwellings thereon, making, negotiating, and servicing of mortgages on real estate, and appraisal of real estate. Member.-Any individual, partnership, association, trust, or corporation subscribing to or coming under the control of this code. National Real Estate and Building Management Code Committee.The Committee charged with responsibility and authority to admin ister this code under the direction of the National Recovery Administration. Subcommittees.-Committees elected by cooperating associations, responsible and subject to the National Real Estate and Building Management Code Committee. Effective Date.-The second Monday after this code shall have been approved by the President of the United States. 9128--33-3 (11)

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12 ARTICLE 3-MAXIMUM HOURS, MINIMUM WAGES On and after the effective date of this code, maximum hours and rate of minimum wages shall be as follows: Max-Minimum weekly wage imum Occupation hours 250,000 2,500 Towns under 2,500 per Over to to week 500,000 500,000 250,000 Clerical employees, not including executives ____ _________________________ 40 $15.00 $14.50 $14.00 $12.00 All wages in towns of Junior office employees who are learning the business, 19 to 20 years of Jess than 2,500 popu-age, inclusive ________________________ 40 12.00 11. 50 11. 00 9.00 Jation to be increased Junior office employees who are learn-by not less than 20% ing the business, 16 to 18 years of provided that this age, inclusive ________________________ 40 10.00 9.50 9.00 7.00 shall not require Office-building and business-property wages in excess of operating employees _________________ 48 15.00 14.50 14.00 12.00 amounts shown in Apartment-, industrial-, and loft-next column to the building operating employees work-left. ing regular consecutive hours ________ 54 15.00 14.50 14.00 12.00 1. In the event that a state law specifies a lower maximum number of hours or a higher minimum wage for any type or class of employees, than is herein provided, no employees may be employed for more than the maximum number of hours or for a wage which is less than the minimum wage provided in such state law within that state. 2. When hours worked per week are less than maximum hours shown, the minimum rate per hour shall be determined by dividing the minimum rate per week by the maximum hours. 3. Employees may be employed in excess of maximum hours shown in case of emergency maintenance and repair work if time and a third is paid for all hours in excess of maximum. 4. In the District of Columbia and the following states, Maryland, West Virginia, Virginia, North Carolina, South Carolina, Georgia, Florida, Alabama, Mississippi, Louisiana, Texas, Oklahoma, Arkansas, Tennessee, and Kentucky, all rates shown shall be reduced by 10%. 5. Due to seasonal variations, clerical and junior office employees may be worked more than 40 hours per week but not to exceed 48 hours per week at regular wages provided the total hours worked in any 6-month period shall not exceed an average of 40 hours per week. 6: Salesmen, solicitors, and rental men working a major part of their time outside of the office, and building _ map.ager$, caretakers, or custodians, whose chief remuneration is free rent of quarters occupied, are exempt under this code as to the provisions of hours and wages. 7. Apartment employees, including janitors, managers, custodians, caretakers, and others whose duties are such that they cannot work consecutive hours but require intermittent attendance, and watch men of all kinds shall not be subject to any ma:x;imum hours limitation but shall have their present wages increased by not less than twenty percent, provided that this shall not require wages in excess of the minimum set out above for consecutive hours apartment operating employees for cities of different sizes.

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13 ARTICLE 4-LABOR RELATIONS Employees shal] have the right to organize and bargain collectively through representatives of their own choosing, and shall be free from the interference, restraint, or coercion of employers of labor, or their agents, in the designation of such representatives or in self-organiza tion or in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. No employee and no one seeking employment sha ll be required as a condition of employment to join any company union or to refrain from joining, organizing or assisting a labor organization of his own choosing. Employers shall comply with the maximum hours of labor, n1inimum rates of pay and other conditions of employment, approved or prescribed by the President. After the effective date no member shall employ any person under sixteen years of age; provided, however, that where a State law speci fies a higher minimum age, no person below the age so specified by such law shall be employed within that state. The right of en1ployer and employee to bargain together free from interference by any third party shall not be affected by this code. ARTICLE 5-GENERAL UNFAIR COMPETITIVE PRACTICES Under this code the following practices shall be considered unfair: 1. Offering to transact or transacting business for a compensation which is determined on a basis less than t,he established rates under this code. 2. Paying commissions or fees to or dividing commissions or fees with other than members substantially engaged in activities as set out in Article 2. 3. Using any trade name or insignia of membership in any organiza tion unless entitled to use it. 4. Acceptance of or charging any undisclosed commission, rebate, or profit on expenditures made for a principal. 5. Acting in the dual capacity of agent and undisclosed principal in any transaction. ARTICLE 6-COMMISSIONS AND FEES Uniform minimum commissions and fees shall be established by local associations or subcommittees in accordance with local custom and practice. If such schedules of minimum commissions and fees established by local associations or subcommittees are submitted to the Real Estate and Building Management Code Committee and are by it approved, they shall thereupon become a part of this code. Until such commissions and fees shall have been so established, the present minimum schedules now in effect in the various communities shall continue. ARTICLE 7-CoLLECTION OF DATA The National Real Estate and Building Management Code Committee shall have authority to make surveys and to compile such reports as it may deem necessary for the accomplishment of the

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14 purposes of the National Industrial Recovery Act. The Committee may also collect such statistics and information as it may deem desir able in order to develop recommendations for the improvement of real estate interests and activities and may assess against all members, equitably, the expenses incident to the administration of this code under such rules and regulations as may be approved by the President under Section 10-A of Title I of the N atjonal Industrial Recovery Act. ARTICLE 8-GENERAL PROVISIONS No provisions of this code shall be interpreted or applied jn such manner as to promote a monopoly or to eliminate or oppress small enterprises and will not operate to discriminate against them and will tend to e ffectuate the policy of Title I. This code may be amended from time to tin1e by the General Code Committee subject to the approval of the President. The President may from time to time cancel or modify any order, approval, licence, rule, or regulation issued under Title I of the N .I.R.A. and any of the provisions of this code shall from time to time be cancelled or modified to the extent necessary to conform thereto. To the extent required or permitted by or under the provisions of Title I of the National Industrial Recovery Act, the provisions of this code shall apply to and be binding upon every member whether or not the member shall have signed an agr e ement" to comply with this code. ARTICLE 9-ADMINISTRATION The administration of this code shall be vested in a committee to be known as the National Real Estate and Building Management Code Committee, which shall consist of six members, elected so as to give representation to the various sections of the United States, appointed by the President of the Institute of Real Estate Management formerly the Property Management Division of the National Association of Real Estate Boards and approved by the Board of Directors of the National Association of Real Estate Boards. This Committee shall have the authority and powers conferred upon it. in this code and such other powers and duties as may be necessary to administer the code subject, however, to the approval of the General Real Estate Code Committee as set up in the General Code Affecting Real Estate to which this Code is supplementary. The Committee may hear complaints against members arising out of alleged violations of this code or of the National Industrial Recovery Act and may cause such complaints to be arbitrated and may initiate proceedings before the appropriate governmental agencies to prevent or to punish such violations. Subcommittees.-Subcommittees may be appointed by local groups. or associations for specific purposes with the approval of the National Real Estate and Building Management Code Committee, which committee shall appoint one of its own members as an ex-officio member of such subcommittee.

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15 NATIONAL ASSOCIATION OF REAL ESTATE BOARDS, August 2 9 , 1933. NATIONAL RECOVERY ADMINISTRATION, Control Division, Washington, D.C. GENTLEMEN: In submitting this code of fair competition for the real-estate and building-management business, The Institute of R eal Estate Manap;ement (formerly the Property Management Division) of the National Association of Real Estate Boards desires to call the attention of the Administration particularly to the following conditions existing in the business. The Institute of Real Estate Management of the National As sociation of Real Estate Boards is composed of those who are leaders in this branch of the business and constitutes the representative body of the whole Association in this field. Attention is called to the fact that a code covering the field of Office and Loft Building Industry has been filed by the National Association of Building Owners and Managers and that another code covering the field of Apartment Building Industry has been or will be filed by the same Association. Attention is also called to the fact that a code coverinp; the Apartment House Industry has been or will shortly be filed by the National Association of Apartment House Owners. The Institute of Real Estate Management and the National Association of Real Estate Boards as a whole have cooperated and desire to continue to cooperate v. ith the two associations mentioned above and any others that may be representative of the business, in the working out of final details of a code for the real-estate and building-management business. Particular attention is called to the attached copy of a letter of transmittal of a general code affecting real estate, regarding the coordination of the real-estate and building-management business and other interests and activities affecting real estate through this general code. Attention is also called to the fact that a rather unusual condition exists as to operating employees in the apartment-building field. Aft.er a very detailed and careful study of the situation it is our opinion that these operating employees should be divided into two general classes; those whose duties can be performed in regular and con secutive hours of labor, and those whose duties are such that they require intermittent but not continuous hours of larrr. In the first class are employees in those large buildinr;s where more than one person is normally employed. This type of employee is now generally working from ten to twelve hours per day, frequently seven days per week . The fiftyfour-hour week proposed for this class will require the employment of a great many more people and will add materially to the pay roll of buildings, most of which are in receivership or financial difficulty. In order to minimize the burden being placed upon the owners of these buildings at this time we hope that the Administration will give careful consideration to these facts and grant the maximum of fifty-four hours. In the second group are included the janitors, custodians, and managers of the tens of thousands of smaller apartment buildings in all of our cities, commonly referred to as "walk-up" apartments. The duties of these employees are such that they do not require continuous attention but because of the necessity of tending fires and showing vacant apartments to prospects usually require residence in the property. These buildings also are producing very little, if any, net income. Many are in receivership and financial difficulty. After careful and thorough discussion with owners and managers of this type of property from all over the United States, keeping constantly in mind the objectives of the Administration, we believe that this type of employees should not be subject to maximum-hour restrictions. It is a general practice in the smaller buildings for one janitor to service several buildings, often under several owners or agents. It is almost impossible to measure his work on an hour basis. The suggested arbitrary increase of not less than 20% in the present wages of this type of employee will effectuate the purposes of the N.I.R.A. and will greatly simplify administration of the code. Inasmuch as buildings of this type are common in all parts of the United States, the working out of the provisions for the employees servicing them is a problem of major importance. The fact that it was not originally included in the apartment house code of the National Association of Building Owners and Managers is probably due to the fact that most of the buildings represented by that organization are of the fireproof elevator type where it is practical to work employees on a consecutive-hour basis. Many of these buildings are located in New York and a few other large cities. Although at this time, in almost every case, the increased wages required by this code must come out of capital and not out of earnings, and although because

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16 of the service nature of the real-estate and building-management business its employment problems cannot be approached from the same angle as those of industry, this group in presenting its code has endeavored to meet the President's request in a manner calculated to materially assist the general recovery program and pledges the utmost cooperation in the working out of any further necessary details. Very truly yours, THE INSTITUTE OF REAL ESTATE MANAGEMENT, NATIONAL ASSOCIATION OF REAL ESTATE BOARDS, By KENNETH C. BROWN, President.

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CODE OF FAIR COMPETITION FOR THE REAL ESTATE MORTGAGE BUSINESS A SUPPLEMENTARY CODE UNDER THE GENERAL CODE AFFE CTING REAL ESTATE FILED BY THE NATIONAL ASSOCIATION OF REAL EST A TE BOARDS ARTICLE I-PURPOSE This code is established in order to effectuate the policy of Title I of the National Industrial Recovery Act, by increasing purchasing power through the payment of fair wages to employees, by limiting hours of labor, increasing, spreading, and sustaining employment, eliminating unfair practices, preventing the destruction of capital assets, and restoring prosperity to all those concerned. This code is one of a number of supplementary codes covering various divisions of the real estate business. It has been filed as a supplementary code to assist the Administration in bringing together under one coordinated plan the various national groups and associa tions of interests and activities affecting real estate. ARTICLE 2-DEFINITIONS Real Estate.-Land, land and improvements, or improvements. Mortgage Bus iness.-The making, negotiating, and servicing of mortgages on real estate. Interests and activities.-Operation of real estate by an owner, to which this code is applicable a .nd the substantial engagement as principal, fiduciary, agent, or councillor in the sale or leasing of real estate, renting and management of real estate, brokerage of insurance connected with the ownership and operation of real estate, subdivision and development of real estate including erection of dwellings thereon, making, negotiating, and servicing of mortgages on real estate, and appraisal of real estate. Member.-Any individual, partnership, association, trust, or corporation subscribing to or coming under the control of this code. National Real Estate Mortgage Code Comm ittee.-The Committee charged with responsibility and authority to administer this code under the direction of the National Recovery Administration. Subcommittees.-Committees appointed by cooperating groups or associations, responsible and subject to the National Real Estate Mortgage Code Committee. Effective Date.-The second Monday after this code shall have been approved by the President of the United States. (17)

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18 ARTICLE 3-MAXIMUM HOURS, MINIMUM WAGES On and after the effective date of this code, maximum hours and rate minimum wages shall be as follows: Maxi-Minimum weekly wage mum Occupation hours 250,000 Towns under 2,500 per Over to 2,500 to week 500,000 500,000 250,000 --Clerical employees and field men; r ll w,go, in townsofl,ss not including executives ___________ 40 $15.00 $14.50 $14.00 $12. 00 than 2,500 population Junior office employees who are to be increased by not learning the business, 19 to 20 less than 20% provided years of age, incL _________ ________ 40 12.00 11. 50 11. 00 9. 00 that this shall not re-Junior office employees who are 1 ouirn w,g,s in ''""' ol learning the business, 16 to 18 ) amounts shown in next years of age , incL ________________ _ 40 10.00 9.50 9.00 7. 00 column to the left. I 1. In the event that a state law specifies a lower maximum nun1ber of hours or a higher minimum wage for any type or class of employees, than is herein provided, no employees may be employed for more than the maximum number of hours or for a wage which is less than the minimum wage provided in such state law within that state. 2. In the District of Columbia and the following states, Maryland, West Virginia, Virginia, North Carolina, South Carolina, Georgia, Florida, Alabama, Mississippi Louisiana, Texas, Oklahoma, Arkansas, Tennessee, and Kentucky, all rates shown shall be reduced by 10%. 3. Due to seasonal variations clerical and junior office en1ployees may be worked more than 40 hours per week but not to exceed 48 hours per week at regular wages provided the total hours worked in any 6 months' period shall not exceed an average of 40 hou.rs per week. 4. The minimum rates of wages provided for herein shall not be interpreted so as to reduce wages now being paid which are in greater amount than the minimum wage provisions of this code, even though the hours of work are reduced. ARTICLE 4-LABOR RELATIONS Employees shall have the right to organize and bargain collectively through representatives of their own choosing, and shall be free from the interference, restraint, or coercion of employers of labor, or their agents, in the designation of such representatives or in self-organiza tion or in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. No employee and no one seeking employment shall be required as a condition of employment to jo.in any company union or to refrain from joining, organizing, or assisting a labor organization of his own choosing. Employers shall comply with the maximum hours of labor, m1n1-mum rates of pay, and other conditions of employment approved or prescribed by the Preside .at. After the effective date no member shal] employ any person under sixteen years of age; provided, however, that where a state law

PAGE 25

19 specifies a higher minimum age no person below the age so specified by such law shall be employed within that State. The right of employer and employee to bargain together free from interference by any third party shall not be affected b y this code. ARTICLE 5-GENERAL UNFAIR COMPETITIVE PRACTICES Under this code the following practices shall be considered unfair: 1. Offering to transact or transacting business for a con1pensation which is determined on a basis less than the established rates under this code. 2. Paying commissions or fees to or dividing comnussions or fees with other than members substantiall y engaged in activities as set out in Article 2. 3. Using any trade name or insignia of membership in any organization unless entitled to use it. 4. Acceptance of or charging any undisclosed comn1ission, rebate, or profit on expenditures made for a principal. ARTICLE 6-COMMISSIONS AND FEES Uniform minimun1 con 1 missions and fees shall be establihsed by lo ca l associat i ons or subcommittees in accordance with l o cal custom and practice. If such schedules of minimum commissions and fees established by l ocal associat i ons or subcommittees are submitted to the National Real Estate Mortgage Code Committee and are by it approved, they shall thereupon become a part of thi s code. Until such commissions and fees shall have been so established, the present minimum schedules now in effect in the various communities shall continue. ARTICLE 7-CoLLECTION OF DATA The ation a l Real Estate Mortgage Code Committee shall have authority to make surveys and to comp il e such reports as it may deem necessary for the accomplishment of the purposes of the a tiona.l Industrial Recovery Act. The Committee may a l so collect such statistics and information as it may deem desirable in order to develop recommendations for the improvement of real estate interests and activities and may assess against a ll members, equitably, the expenses incident to the administration of this code under such rules and regu lations as may be approved by the President under Section 10-A of Title I of the National Industrial Recovery Act. ARTICLE 8-GENERAL PROVISIONS No provision of this code shall be interpreted or applied in such manner as to promote a n1onopoly or to eliminate or oppress small enterprises and will not operate to discriminate against them and will tend to effectuate the poli cy of Title I. This code may be amended from time to time by the National Real Estate Mortgage Code Committee subject to the approval of the President. The President may from time to time cancel or modify any order, approval, license, rule, or regulation i ssued under Title I of the National Industrial Reco very Act and any of the provisions of this

PAGE 26

20 code shall from time to time be cancelled or modified to the extent necessary to conform thereto. To the extent required or permitted by or under the provjsions of Title I of the National Industrial Recovery Act, the provisions of this code shall apply to and be binding upon every member whether or not the member shall have signed an agreement to comply with this code. ARTICLE 9-ADMINISTRATION The administration of this code shall be vested in a committee to be known as the National Real Estate Mortgage Code Committee, which shall consist of six members, selected so as to give representation to the various sections of the United States, appointed by the Chairman of the Mortgage and Finance Division of the National Association of Real Estate Boards and approved by the Board of Directors of the National Association of Real Estate Boards. This Committee shall have the authority and powers conferred upon it in this code and such other powers and duties as may be necessary to administer the code, subject however to the approval of the General Real Estate Code Committee as set up in the General Code Affecting Real Estate to which this code is supplementary. The Committee may hear complaints against members arising out of alleged violations of this code or of the National Industrial Recovery Act and may cause such complaints to be arbitrated and may initiate proceedings before the appropriate governmental agencies to prevent or to punish such violations. Subcommittees.-Subcommittees may be appointed by local groups or associations for specific purposes with the approval of the National Real Estate Mortgage Code Committee, which committee shall appoint one of its own members as an ex officio member of such subcommittee. NATIONAL ASSOCIATION OF REAL ESTATE BOARDS, Chicago, August 30, 1933. NATIONAL RECOVERY ADMINISTRATION, Control Division, Washing ton, D. C. GENTLEMEN: In submitting this code of fair competition for the real-estate mortgage business the Mortgage and Finance Division of the National Association of Real Estate Boards desires to call the attention of the Administration to the fact that during the past three or four years the income of the mortgage business has been very materially reduced due to inability to make or negotiate mortgages, and that during this time of greatly decreased income the labor connected with the servicing of mortgages previously made has increased manyfold. Payment of taxes must be checked and rechecked and the problem of collections and fore closures adds a heavy burden. The Mortgage and Finance Division of the National Association of Real Estate Boards is comprised of those who are the national leaders in this branch of the business and constitute the representative body of the whole Association in this field. Attention is called to the fact that a code covering this same field has been or will soon be filed with the Administration by the Mortgage Bankers Association of America. This Division has cooperated and desires to continue to cooperate with the Mortgage Bankers Association in the working out of final details of a code for the mortgage business. Particular attention is called to the attached copy of a letter of transmittal of a general code affecting real estate, regarding the coordination of the real-estate mortgage business and other interests and activities affecting real estate through this general code. Although at this time in almost every case the increased wages required by the code submitted must come out of capital and not out of earnings, and although because of the service nature of the real-estate business most of its employment

PAGE 27

21 problems cannot be approached from the same angle as those of industry, this group in presenting its code has endeavored to meet the President's request in a manner calculated to materially assist the general recovery program and pledges the utmost cooperation in the working out of any further necessary details. Yours very truly, MORTGAGE AND FINANCE DIVISION, NATIONAL ASSOCIATION OF REAL ESTATE BOARDS, By AUGUST C. SEHRT, Chairman.

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CODE OF FAIR COMPETITION FOR THE LAND DEVELOPMENT AND HOME BUILDING BUSINESS A SUPPLEMENTARY CODE UNDER THE GENERAL CODE AFF E C T ING REAL ESTATE FILED BY THE NATIONAL ASSOCIATION OF REAL ESTATE BOARDS ARTICLE I-PURPOSE This code is established in order to effectuate the policy of Title I of the National Industrial Recovery Act, by increasjng purchasing power through the payment of fair wages to employees, by limiting hours of labor, incre asing , spreading, and sustaining employment, eliminating unfair practices, preventing the destruction of capital assets, and restoring prosp erity to a ll those concerned. This code is one of a number of supplementary codes covering various divisions of the real estate business. It has been filed as a supplementary code to assist the Administration in bringing together under one coordinat e d plan the various national groups and associa tions of interests and activities affecting real estate. ARTICLE 2-DEFINITIONS Real Estate.-Land, land and improvements, or improvements. Interests and Activities.-Operation of real estate by an owner to which this code is applicable and the substantial engagement as principal, fiduciary, agent or counselor in the sale or leasing of real estate, renting and management of real estate, brokerage of insur ance connected with the ownership and operation of real estate, subdivision and developm ent of real estate including erection of dw ellings thereon, making, negotiating and servicing of mortgages on real estate, appraisal of real estate. Land Development and Home Buildin g Business.-Engagement as principal or agent in the preparation and improvement of land for dwelling sites and the erection, alteration or remodeling of dwellings thereon. Member.-Any individual, partne rship, association, trust or corporation subscribing to or coming under the control of this code. National Land Development and Home Bw:ld ing Gode Committee.The Committee charged with responsibility and authority to ad minister this code under the direction of the National Recovery Administration. Subcommittees.-Committees elected by cooperating associations, responsible and subject to the National Land Development and Home Building Code Committee. Effective Date.-The second Monday after this code shall have been approved by the President of the United States. 9128-33-2 ( 23)

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24 ARTICLE 4-MAXIMUM HOURS, MINIMUM WAGES On and after the effective date of this code, maximum hours and rate of minimum wages shall be as follows: Maxi Minimum weekly wage mum Occupation hours 250,000 Towns under 2,500 per Over to 2,500 to week 500,000 500,000 250,000 Clerical employees, not including exec-40 $15.00 $14.50 $14.00 $12.00 All wages in towns of utives. less than 2,500 pop-Junio r office employees who are learn-40 12.00 11. 50 11. 00 9.00 ulation to be ining the business, 19 to 20 ye a rs of age, creased by not less inclusive. than 20% provided Junior office employees who are learn-40 10.00 9 .50 9.00 7.00 ) that this shall not ing the business, 16 to 18 years of age, require wages in exinclusive . Land development and land mainte-40 15.00 14.50 14.00 12.00 cess of amounts shown in next colnance e mployees. umn to the l e ft. Home building employees _____________ 40 16.00 15.60 15.20 14.80 1. In the event that a state law specifies a lower maximum number of hours or a higher minimum wage for any type or class of employees, than is herein provided, no einployees may be employed for more than the maximum number of hours or for a wage which is less than the n1inimum wage provided in such state law within that state. 2. When hours worked per week are less than maximum hours shown, the minimum rate per hour shall be determined by dividing the minimum rate per week by the maximum hours. 3. Employees may be employed in excess of maximum hours shown .in case of emergency maintenance and repair work if time and a third .is paid for all hours in excess of maximum. 4. In the District of Columbia and the following states: Maryland, West Virginia, Virginia, North Carolina, South Carolina, Georgia, Florida, Alabama, Mississippi, Louisiana, Texas, Oklahoma, Arkansas, Tennessee, and Kentucky all rates shown shall b~ reduced by 10%. 5. Land-development, land-n1aintenance, and home-building em ployee's hours in excess of the maximum shown may be worked at the regular rate per hour to compensate for time lost through climatic cond itions, provided that not over 8 hours in any day, 48 hours in any week, nor a.n a vera.ge of over 40 hours per week any six months' period shall be worked. 6. Due to seasonal variations, clerical-and junior-office employees n1ay be worked more than 40 hours per week but not to exceed 48 _ hours per week at regular wages, provided the total hours worked in any 6 months' period shall not exceed an average of 40 hours per week. 7. Salesmen, solicitors, and rental men working a major part of their time outside of the office, and building mana.gers, caretakers, or custodians, whose chief remuneration is free rent of quarterE occupied, are exempt under this code as to the provisions of hours a .nd wages. 8. The n1inimum rates of wages provided for herein shall not be interpreted so as to reduce wages now being paid which are in greater amount than the minimum wage provisions of this code, even though the hours of work are reduced.

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25 ARTICLE 4-LABOR RELATIONS Employees shall have the right to orga.nize and bargain collectively tbrough representatives of their own choosing, and shall be free from the interference, restraint, or coercion of employers of labor, or their agents, in the designation of such representatives or in self-organi.. zation or in other concerted activities for the purpose of collective bargaining or other n1utual aid or protection. No employee and no one seeking employment shall be required as a cond i tion of employment to join any company union or to refrain from joining, organizing, or assisting a labor organization of his own . choosing. Employers shall comp ly with the maximum hours of l abor, minimum rates of pay, and other conditions of employment approved or prescribed by the President. After the effective date no member shall employ any person under s ix teen years of age; provided, however, that where a state law speci fies a higher minimum age, no person below the age so specified by suc h law shall be employed within that state. The right of employer and employee to bargain together free from interference by any third party shall not be affected by this code. ARTICLE 5-GENERAL UNFAIR COMPETITIVE PRACTICES Under this code the following practices shall be considered unfair: 1. Offering to transact or transacting business for a compensation which is determined on a basis l ess than the established rates under this code. 2. Paying commissions or fees to or dividing commissions or fees with other than members substantially engaged in activities as set out in Article 2. 3. Using any trade narn . e or insi gn i a of membership in any organ ization unless entitled to use it. 4. Ac ceptance of or charging any undisclosed commissi on, rebate, or profit on expenditures made for a principal. 5. Seeking prospects or purchasers for real estate by offering the public free lots, lottery, contest prizes or other similar inducements without adequate consideration therefor. 6. Acting in the dual capacity of agent and undisclosed principal in any transaction. 7. Engaging in the practice known as bid peddling. ARTICLE 6-COMMISSIONS AND FEES Uniform minimum commissi ons and fees shall be established by local associations or subcommittees in accordance with lo ca l custom and practice. If such schedules of minimum commissions and fees established by lo ca l associations or subcommittees are submitted to the ational Land Development and Home Building Code Committee and are by it approved, they shall thereupon become a part of this code. Until such commissions and fees shall have been so estab lished, the present minimum schedules now in effect in the various , c01nmunities shall continue. I

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26 ARTICLE 7-COLLECTION OF DATA The National Land Development and Home Building Code Committee shall have authority to make surveys and to compile such reports as it may deem necessary for the accomplishment of the purposes of the National Industrial Recovery Act. The Committee may also collect such statistics and information as it may deem desirable in order to develop recommendations for the improvement of real estate interests and activities and may assess against all members, equitably, the expenses incident to the administration of this code under such rules and regulations as may be approved by the President under Section 10-A of Title I of the National Industrial Recovery Act. ARTICLE 8-GENERAL PROVISIONS No provision of this code shall be interpreted or applied in such manner as to promote a monopoly or to eliminate or oppress small enterprises and will not operate to discriminate against them and will tend to effectuate the policy of Title I. This code may be amended from time to time by the National Land Development and Home Building Code Committee subject to the approval of the President. The President may from time to time cancel or modify any order, approval, license, rule, or regulation issued under Title I of the N .LR.A. and any of the provisions of this code shall from time to time be cancelled or modified to the extent necessary to conform thereto. To the extent required or permitted by or under the provisions of Title I of the National Industrial Recovery Act, the provisions of this code shall apply to and be binding upon every member whether or not the member shall have signed an agreement to comply with this code. ARTICLE 9-ADMINISTRATION The administration of this code shall be vested in a committee to be known as the National Land Development and Home Building Code Committee, which shall consist of six members, elected so as to give representation to the various sections of the United States, appointed by the Chairman of the Land Developers and Home Builders Division of the National Association of Real Estate Boards and approved by the Board of Directors of the National Association of Real Estate Boards. This Committee shall have the authority and powers conferred upon it in this code and such other powers and duties as may be necessary to administer the code, subject, how ever, to the approval of the General Real Estate Code Committee as set up in the General Code Affecting Real Estate to which this code is supplementary. The Committee may hear complaints against members arising out of alleged violations of this code or of the National Industrial Recovery Act and may cause such complaintsl_to be arbitrated and may initiate proceedings before the appropriate governmental agencies to prevent or to punish such violations. Subcommittees.-Subcommittees may be elected by local groups or associations for specific purposes with the approval of the National Land Development and Home Building Code Committee, which.

PAGE 33

27 committee shall appoint one of its own members as an ex officio member of such subcommittee. NATIONAL ASSOCIATION OF REAL ESTATE BOARDS, NATIONAL RECOVERY ADMINISTRATION, Chicago, August 30, 193 3 . Control Division, Washington, D.C. GENTLEMEN: In submitting this code of fair competition of the Land Development and Home Building Bus iness, the Land Deve l opers and Home Builders Division of the National Association of Real Estate Boards desires to call the attention of the Administration to the peculiar conditions and problems confronting this business. The Land Developers and Home Builders Division is composed of those who are the leaders in this branch of the real estate business and constitutes the representative body of the whole National Association in this field and is representative of the larger portion of the Land Development and Home Building Business of the United States. Attention is called to the fact that a code has been filed by the Construction League covering the construction industry, which might be interpreted to include the Home Building Business. Inasmuch as the Home Building Business has always been largely composed of small business units and never has conformed and cannot now conform to the standards of costs which are common to the construction industry, it is believed that the inclusion of the Home Building Business under any code other than one including its allied business, the development of the site, will not only tend to oppress and destroy the business of those now constituting it, but will place further and undesirable obstacles in the path of home ownership. Attention is also called to the fact that a code has been or shortly will be filed by the Residential Contractors Association, and it is the desire of the Land Development and Home Builders Division to cooperate fully in the final working out of a code covering this branch of the business. Particular attention is called to the attached copy of a letter of transmittal of a general code affecting real estate, regarding the coordination of land development and home building business and other interests and activities affecting real estate, through this general code. This Division pledges its utmost cooperation in the working out of any further necessary details. Very truly yours, LAND DEVELOPERS AND HOME BUILDERS DIVISION, NATIONAL AssocIATION OF REAL EsTATE BoARDS, By Guy T. 0. HOLLYDAY, Chairman.

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CODE OF FAIR COMPETITION FOR THE PROFESSION AND BUSINESS OF REAL-ESTATE APPRAISING A SUPPLEMENTARY CODE UNDER THE GENERAL CODE AFFECTING REAL ESTATE FILED BY THE NATIONAL ASSOCIATION OF REAL ESTATE BOARDS ARTICLE 1-PURPOSE This code is establi shed in order to effectuate the policy of Title I of the National Industrial Recovery Act, by increasing purchasing power through the payment of fair wages to employees, b y li miting hours of labor, increasing, spreading, and sustaining en1ployment, elimina ting unfair practices, and restoring pro3perity to al] those concerned. This code i s one of a number of supplementary codes covering variou s divisions of the real-estate business. It has been filed as a supplementary code to assist the Administration in bringing together under one coordinated plan the various national groups and associa tions of interests and activities affecting real estate. ARTICLE 2-DEFINITIONS Real Estate.-Land, land and improvements, or improvements. Interests and Activities.-Operation of real estate, by an owner to which this code is applicable and the substantial engagement as principal, fiduciary, agent, or counselor i n the sale or leasing of real estate, renting and management of real estate, brokerage of insurance connected with the ownership and operation of real estate, subdivi sion and development of real estate, including erection of dwellings thereon, making, negotiating, and servicing of mortgages on real estate, appraisal of real estate. Real-Estate Appraisal.-A determination of the utility, price, or value of real estate or an interest therein. Profess ion of Real-Estate Appraising.-Engagen1ent in making real estate appraisals for others for a fee, b y an individual who has qualified under the standards and subjected himself to the regulations and disicipline of a representative professional society such as the Ameri can Institute of Real-Estate Appraisers of the National Association of Real-Estate Boards. Business of Real-Estate Appraising.-Substantial engagement in the making of real-estate appraisals for others for a fee, on the part of any individual, partnership, firm, association, trust, or corporation. Member.-Any individual engaged in the profes s ion, or any individual, partners hip, firm, association, trust, or corporation engaged in the business of real-estate appraising who subscribes to or comes under the control of this code. (29) (

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30 National Real-Estate Appraisal Code Committee.-The Committee charged with responsibility and authority to administer this code under the direction of the National Recovery Administration. Subcommittees.-Committees appointed by cooperating associa tions, responsible and subject to the National Real-Estate Appraisal Code Committee. Effective Date.-The second Monday after this code shall have been approved by the President of the United States. ARTICLE 3-MAXIMUM Houus, MINIMUM WAGES On and after the effective date of this code, maximum hours and rate minimum wages shall be as follows: Maxi-Minimum weekly wage mum Towns under 2,500 Occupation hrs. per Over 250,000 2,500 to to week 500,000 500,000 250,000 Clerical employees and field men, 40 $15.00 $14.50 $14.00 $12.00 All wages in towns of less not including executives. than 2,500 population Junior office employees who are le arn-40 12.00 11. 50 11. 00 9.00 to be increased by not ing the business, 19 to 20 years of less than 20%, provide d age, incl. that this shall not re-Junior office employees who are 40 10.00 9.50 9.00 7.00 quire wages in excess of learning the business, 16 to 18 years amounts shown in next of age, incl. column to the left. 1. In the event that a state law specifies a lower maximum number of hours or a higher minimum wage for any type or class of employees, than is herein provided, no employees may be employed for more than the maximum number of hours or for a wage which is less than the minimum wage provided in such state law within that state. 2. In the District of Columbia and the following states, Maryland, West Virginia, Virginia, North Carolina, South Carolina, Georgia, Florida, Alabama, Mississippi ; Louisiana, Texas, Oklahoma, Arkansas, Tennessee, and Kentucky, all rates shown shall be reduced by 10% . . 3. Due to seasonal variations, clerical and junior office employees may be worked more than 40 hours per week but not to e:s:ceed 48 hours per week at regular wages provided the total hours worked in any 6 months period shall not exceed a n average of 40 hours per week. 4. The minimum rates of wages provided for herein shall not be interpreted so as to reduce wages now being paid which are in greater amount than the minimum wage provisions of this code, even though the hours of work are reduced. ARTICLE 4-LABOR RELATIONS Employees shall have the right to organize and bargain collectively through representatives of their own choosing, and shall be free from the interference, restraint, 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. No employee and no one seeking employment shall be required ~s a condition of employment to join any company union or to refrain

PAGE 37

31 from joining, organizing, or assisting a labor organization of his own choosing. Employers shall comply with the maximum hours of labor, minimum rates of pay, and other conditions of employment approved or pre scribed by the President. After the effective date no member shall employ any person under sixteen years of age; provided, however, that where a state law speci fies a higher minimum age no person below the age so specified by such law shall be employed within that state. The right of employer and employee to bargain together free from interference by any third party shall not be affected by this code. ARTICLE 5-STANDARDS OF UNFAIR AND FAIR PRACTICES CONTINGENT FEES SECTION 1. It is unethical for an appraiser to accept an order to appraise a property if his employment or fee is contingent upon his reporting a predetermined or specified amount of value or is otherwise contingent upon any finding to be • reported. SEc. 2. It is unethical for a n appraiser retained in cases where damage s result fron1 the exerci se of the right of eminent domain , or result because of fraud, misrepresentation, etc., to make his compen sa t ion contingent upon the amount of, or to fix his compensation as a percentage of the damages which may be decreed by the Court deciding the issues in the case involved. SEc. 3. It is unethical for an appraiser to accept an assignment to appraise a property when such assignment involves a bonus, a favor, or any special inducement other than a fair professional fee for the responsibility entailed and the work and expense involved. DISINTERESTED APPRAISALS SECTION 1. It is unethical for an appraiser to issue an appraisal report if he is acting or intending to act in capacity of broker, lo a n broker, or manager, or if he has an ownership, contemplated future ownership, or any other interests in connection with the property appraised, unless such interest or interests be fully disclosed in the appraisal certificate. INDEPENDENT APPRAISALS SECTION 1. It is unethical for appraisers who have been retained to make independent appraisals of a property to collaborate or consult with one another with reference to the appraisal, or to make use of the findings or figures developed or reported by any appraiser so retained. SEc. 2. It is unethical for appraisers who have been retained to collaborate in the making of an appraisal to issue separate appraisal reports on the property appraised. They should sign a joint report, or if there be dissenting opinions these opinions should be stated in the report rather than in separate documents apart from the report.

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) ,I I ') ,") u..:. HYPOTHETICAL APPRAISALS SECTION 1. It is unethical for an appraiser to issue an appraisal report with the value predicated on assumed rentals and expenses at variance with his best judgment of the probable market at the time at which the reported value obtains. SEC. 2. It is unethical for an appraiser to issue an appraisal report on an investment property based on an earning expectancy which does not analyze and take note of existing leases. SEc. 3. It is unethical for an appraiser to issue an appraisal report in which the reported value is based on the completion of public or private improvements which are not assured unless he clearly states that the appraisal is made on that hypothesis. Provided that, in any event, he rnust state in his report the conditions with regard to such improvements which he assumes in determining the value reported. SEc. 4. It is unethical for an appraiser to issue an appraisal report in which the reported value is based on the assumed absence of any legal restriction, unless such assumption is reasonable or in accord with legal opinion accepted by the appraiser, and unless the legal authority and his opinion are quoted in the appraisal certificate, and it is expressly stated that the appraisal is contingent on such lawful restriction being changed or absent in accordance with the assumption. FRACTIONAL APPRAISALS SECTION 1. It is up.ethical for an appraiser to issue an appraisal report on a fractional part of a property unless he specifically states that the value reported is invalidated if used in making a summation appraisal of the property as a whole. SEc. 2. In appraising the security for a loan it is unethical for an appraiser to issue a certificate covering anything less than all of the property designated as security for the loan. SEc. 3. In particular, in appraising the security for a lease-hold loan, it is unethical for an appraiser to issue a certificate of value of the improvement only, omitting the value of the leasehold, which latter may be positive, zero, or negative. SUMMATION APPRAISALS SECTION 1. It is unethical for an appraiser to issue an appraisal report on a property in which the total reported value is derived by adding together the values of fractional parts of the property unless it is shown that no incompatible conditions were assumed in making the fractional appraisals. SEc. 2. In particular, in appraising the security for a loan, the market price, market value, or other economic value of a property, it is unethical for an appraiser to issue an appraisal report on a property in which the total reported value is derived by adding together the market value of the land (or len,sehold) as if unimproved, or the value of the land (or leasehold) as if improved to the highest and best use, and the reproduction cost of the improvements less accrued structural depreciation, unless other and conclusive evidence is given that this result equals the total value of the property considered as a unit.

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33 EC. 3. The restrictions of sections 1 and 2 immediately above do not apply where the appraisal report clearly states that the valuation is for the purpose of replacement or physical cost such as for fire-insurance purposes, re-creation of equivalent physical units, or the like. ECONOMIC PROBABILITIES A D VALUE OF INVESTME T PROPERTY SECTION 1. It is unethical for an appraiser to issue an appraisal report on a construction project which does not give the appraiser's opinion of the economic soundness of the project. SEc. 2. It is unethical for an appraiser to issue an appraisal report on an investment construction project without also reporting the assumed date of normal occupancy, his estimate of the reasonably expected earnings of the project upon completion as well as upon attaining the assumed normal average occupancy, and his estimate of net earnings or deficits during the period from completion to normal -occupancy. SEc. 3. If the value reported is the value which in the opinion of the appraiser will prevail when normal occupancy is attained, it is unethi -cal for the appraiser to report the value as of any other than the date when it is assumed such normal occupancy will have been attained. DUTY TO HOLD FINDINGS CONFIDENTIAL SECTION 1. It is the duty of an appraiser to hold as confidential the fact that he has been employed to make an appraisal, his results and other findings, until released from his obligation by the client or by due process of law. EXPERT TESTIMONY SECTION 1. In giving testimony as to the value of real property in any court or before any other legally constituted tribunal, an apprniser may follow rules of procedure as to appraisal method legally binding in that jurisdiction even though such rules may be at variance with the provision of these Standards. PROFESSIONAL IDENTIFICATION SECTION 1. It is unethical to use any trade name or insi!?;nia of membership in any organization unless entitled to use it. It is ethical to use the words "Certified Appraiser" or other title of similar purport unless the source of such certification or other identification be disclosed at the same time. CONTENTS OF APPRAISAL CERTIFICATES SECTION 1. It is unethical for an appraiser to omit any of the following from his appraisal certificate: (1) An unequivocal identification and reasonably complete description of the property appraised. (2) A statement of any contingent, assumed, or nonexisting condi tions upon which the appraisal has been based. For example: The validity of legal, engineering, or auditing opinions used; the comple tion of projected public or private improvements; new improvements to be erected or remodeling to be done; and the like.

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I 34 (3) The date or time at which the value obtains. (4) The amount of the value. (5) A statement that the undersigned appraiser has no present or contemplated future interest in the property appraised; or a statement disclosing all such interests which the undersigned appraiser may have in the property appraised. (6) A statement that the appraiser's compensation and employnient are not contingent upon the amount of the value reported, nor are either contingent upon the amount of damages or other benefits resulting from awards by arbitrators, through judicial decree, mortgage, or other advances, and the like-except as may be fully set forth in the report. (7) In case the property appraised is a fraetional part of the property of a type covered by this code, a statement that the value reported is invalidated if used in making a summation appraisal of the property as a whole. (8) A signature clearly and definitely placing the responsibility for any statements or opinions and for the valuation given. ARTICLE 6-COMMISSIONS AND FEES Uniform minimum fees shall be established by local associations or subcommittees in accordance with local custom and practice. If such schedules of minimum fees established by local associations or subcommittees are submitted to the National Real Estate Appraisal Code Committee and are by it approved, they shall thereupon become a part of this code. Until such fees shall have been so established, the present minimum schedules now in effect in the various communities shall continue. ARTICLE 7-COLLECTION OF DATA The National Real Estate Appraisal Code Committee shall have, authority to make surveys and to compile such reports as it may deem necessary for the accomplishment of the purposes of the National Industrial Recovery Act. The Committee 1nay also collect such statistics and information as it may deem desirable in order to de velop recommendations for the improvement of real-estate interests and activities and may assess against all members, equitably, the expenses incident to the administration of this code under such rules and regulations as may be approved by the President under Section 10-A of Title I of the National Industrial Recovery Act. ARTICLE 8-GENERAL PROVISIONS No provi s ions of this code shall be interpreted or applied in such manner as to promote a monopoly or to eliminate or oppress small enterprises and will not operate to discriminate against them and will tend to effectuate the policy of Title I. This code may be amended from time to time by the National Real Estate Appraisal Code Committee subject to the approval of the President. The President may from time to time cancel or modify any order, approval, license, rule, or regulation issued under Title I of the National Industrial Recover y Act and any of the provisions of this

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35 code shall from time to time be cancelled or modified to the extent necessarv to conform thereto. To the extent required or permitted by or under the provisions of Title I of the National Industrial Recovery Act, the provisions of this code shall apply to and be binding upon every member whether or not the men1ber shall have signed an agreement to comply with this code. ARTICLE 9-ADMINISTRATION The administration of this code shall be vested in a committee to be known as the National Real Estate Appraisal Code Committee, which shall consist of six n1embers, elected so as to give representation to the various sections of the United States, from nominations made by the President of the American Institution of Real Estate Appraisers of the National Association of Real Estate Boards and approved by the Board of Directors of the National Association of Real Estate Boards. This Committee shall have the authority and powers con ferred upon it in this code and such other powers and duties as may be necessary to administer the oode, subject however to the approval of the General Real Estate Code Committee as set up in the General Code Affecting Real Estate to which this Code is supplementary. The Co1nmittee n1ay hear complaints against members arising out of alleged violations of this code or of the National Industrial Recovery Act and may cause such complaints to be arbitrated and may initiate proceedings before the appropriate governmental agencies to prevent or to punish such violations. Subcommittees.-Subcommittees may be appointed by local groups or associations for specific purposes with the approval of the National Real Estate Appraisal Code Committee, which committee shall appoint one of its own members as an ex-officio member of such subcommittee. NATIONAL AssocIATION OF REAL ESTATE BOARDS, August 29, 1933. NATIONAL RECOVERY ADMINISTRATION, Control Division, Washington, D.C. GENTLEMEN: In submitting this code of fair competition for the profession and business of real estate appraising the American Institute of Real Estate Appraisers of the National Association of Real Estate Boards desires to call the 2.ttention of the Administration particularly to the following: The American Institute of Real Estate Appraisers is a professional organization requiring its members to qualify under high standards and to subject themselves to regulation and discipline. So far as is known to the Institute it is the only organization or society covering the field of real-estate appraising in the United States. It believes that it is representative of the highest type of individual Real Estate Appraisers, who in a professional capacity, appraise real estate. Although we believe that professional occupations are exempt from the provisions of the N.I.R.A., there is a growing business which involves the employment of clerical help, that through the use of standardized methods makes appraisals on what might be termed a "wholesale" basis, which probably should come under the provisions of the N.I.R.A. and it is to cover this field that this code is presented. The establishment of definite and adequate standards of practice and ethics in this profession and business is of major importance to all allied interests and activities affecting Real Estate and it is hoped that the standards set out in this code will receive the careful consideration of the Administration at the proper time. Particular attention is called to the copy of a letter of transmittal accompanying the General Code affecting Real Estate, to which the Appraisers' Code is supplementary.

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36 This Institute desires to cooperate with any other interest when it becomes proper and necessary to complete the details of a code for the Appraisal business. Very truly yours, AMERICAN INSTITUTE OF REAL ESTATE APPRAISERS OF THE NATIONAL ASSOCIATION OF REAL ESTATE BOARDS, By PHILIP W. KNISKERN, President. 0

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