ARTICLE XXIII - CODE OF ETHICS

 

The Code of Ethics was enacted by the State Executive Committee as a means of establishing a uniform standard of conduct. Additions may be made to the Code, from time to time by the State Executive Committee, so long as the new provisions are consistent with the existing Code. We adhere to the ethical principles involved in the transfer of businesses, and believe that the investment, risk and effort required to build a profitable business deserve a fair evaluation and a straightforward, professional and honest presentation to both sellers and buyers.

 

 

A. Members should keep themselves informed as to trends affecting business opportunities.

 

 

B. Members will make a reasonable effort to protect the public and all parties to a transaction against fraud, misrepresentation or unethical practice.

 

 

C. Members will recommend that clients and customers use attorneys and tax accountants for independent advice on transactions.

 

 

D. Members will use their best efforts to see that financial obligations and commitments of all parties to a transaction are in writing and that all parties have received copies of agreement(s).

 

 

E. Members will not receive compensation from more than one party without the full knowledge of all parties to the transaction.

 

 

F. The exclusive listing of businesses should be urged and practiced by members.

 

 

 

G. Members will not serve as principal and/or broker or appraiser of a transaction unless full disclosure is made in writing to all principals involved.

 

 

H. Members should not undertake to make business appraisals that are outside or beyond the scope of their experience without first obtaining the assistance of an authority on such types of businesses.

 

 

I. Members should seek no unfair advantage over their fellow members and should willingly share with them the lessons of their experience and study.

 

 

J. Members will cooperate with other members on businesses listed.

 

 

K. Members will not deny equal professional services to any person(s) for reasons of race, color, religion, gender, or country of national origin.

 

 

ARTICLE XXIV - COOPERATION AGREEMENT BETWEEN MEMBERS

 

A. Active, Associate and Branch Members will at all times maintain on file with the BBF-MLS system, data pertaining to all exclusive right-of-sale, exclusive agency listings, and exclusive transaction listings, unless excused by the guidelines set by the State Executive Committee from time to time. New franchises (not opened) in which a BBF member is authorized to sell by the franchisor on an open listing basis will be allowed to post these listings in the (new franchise section) in the BBF MLS System.

 

 

B. Active Associate and Branch Members will furnish the BBF-MLS system, information about their listings as specified by the State Executive Committee within seven (7) days from the date of initial advertising.

 

 

C. The Association will make available to all Active, Associate and Branch Members listing information submitted by its members through the BBFBBMS-MLS system.

 

 

D. Members will cooperate in the showing of businesses listed under Paragraph A above with other members through the listing office, who may, in their sole discretion, elect whether or not they wish to be present for said showings.

 

 

E. Members will submit all bona fide written offers received on any business listed with another member directly to the listing broker, and will not, under any circumstances, present any offer directly to the owner of said business without the prior written approval of the listing broker.

 

 

F. Members will, in a timely manner, present to the owner of any business listed by them, all bona fide written offers received from other members, and will immediately notify said members upon acceptance or rejection of any offers submitted. The decision to accept or reject an offer remains with the seller at all times.

 

 

G. Members will not disclose one buyer's offer to another buyer as a sales technique.

 

 

H. The total compensation earned (including commission, on the business and or real estate, lender payments and lease commission fees, that are part of the transaction) on the sale of any business made pursuant to the provisions of this Agreement will be divided equally between the listing broker and the selling broker, unless otherwise agreed to in writing. Either broker may reduce or alter its share of the compensation as long as the share of the other broker remains unchanged.

 

 

I. No listing broker can specify the form a selling broker may use in the presentation of an offer.

 

 

J. Members will not advertise any business, which is not listed by them without the prior written consent and approval of the listing broker unless it is through the MLS provider.

 

K. Failure of the member to comply with any of the provisions of this Agreement will be grounds for Professional Standards action against said member.

 

 

L. Members agree to share information and co-broker, with other members, any advertised listing, whether it is in the MLS system or not.

 

 

M. Commission referral fees to third party. The listing office will be allowed to post into the MLS a listing for the sale of a business or property listed by a BBF member that requires a referral fee to be paid to a third party and reduce the amount of the commission to be split by the listing and selling BBF office members if it meets the following criteria;

 

 

a. The listing agreement used for listing the business or property must be on the BBF members listing agreement. No assignments of a listing agreement or the referring entity’s listing agreement can be used.

 

 

b. The original amount of the commission must be a minimum of $100,000.00 before it is adjusted or reduced either by contract or agreement. Any referral fees paid on commissions with the original commission being under $100,000 shall be paid from the listing broker’s commission proceeds.

 

 

c. The third party recipient must be properly licensed and or in compliance with any applicable laws to receive the referral fee.

 

 

d. The third party receiving the referral fee must have no connection, affiliation, can not be related to any of the principles or the person or entity that is either the listing or selling office, or have any kind of ownership or anticipated ownership in the listing or selling offices involved in the transaction. The relationship between the listing office, the selling office, and the referring office must be arms length.

 

 

N. In the absence of a prior written agreement, fees or compensation for completing a transaction will be split on a fifty-fifty basis between member firms and other association as set forth by the State Executive Committee, such fees or compensation to be paid promptly upon receipt of same. Selling office must attend the first showing with their buyer prospect or lose the right to a fifty/fifty split. A 20% referral fee of the selling side of the commission will be set as the default.

 

 

Listing broker must give the selling broker sufficient time to attend such meeting. The listing broker also has the right to cancel such meeting if the selling broker cannot attend, waive the attendance requirement, or obtain the acceptance of another fee arrangement in writing.  If selling broker does not attend first showing after agreeing to, and was given ample opportunity to attend, listing broker must notify the selling broker in writing of the loss of their fifty-fifty split rights within 7 days after such showing. If selling broker disputes such loss, the dispute should be handled immediately. Absence of action by the listing broker will be construed as a waiver of the attendance requirement and the split will be fifty-fifty.

 

 

Brokers are highly encouraged to get any arrangement in writing prior to the presentation of an offer.