Code of Ethics

The Professional and Ethics Arbitration and Dispute

PART 1 : THE PROFESSIONAL

Article 33

Members of a FNAIM Chamber must adhere fully to the Federal internal rules , regulations and Standard of Practices and must follow the decisions and recommendations made by the Federal Board as well.

Any Real Estate professional wishing to become a member of FNAIM must obtain a financial guarantee covering the activities described in Article 1 of the Law 70.9 of January 2 1970 . This financial guarantee may be obtained either:

1. From the FNAIM GUARANTEE FUND ( Caisse de Garantie de l'immobilier FNAIM ) :
   
   • when applying for membership, if the professional is starting a new business.
   • As soon as possible and at the latest on the 1st of January following the application in other cases . This may be exceptionally extended by a year for applications made during the last quarter of the year.

   
   The applicant is then accepted as temporary member as final acceptance and full membership can only be obtained upon admission to the FNAIM Guarantee Fund.

   Membership is lost immediately upon non conformance to the principles abovementioned.
   
   
2. From a Guarantor approved by FNAIM and the FNAIM Guarantee Fund, if the Fund cannot supply to the Bank of France Commission , the security required in case of exceeding the "high guarantees" ratio and therefore cannot provide a guarantee above the maximum authorised by the level of assets considered.
   
   The member to which this paragraph applies, must commit to obtain admission to the FNAIM Guarantee Fund as soon as the Fund is in a position to approve the Guarantee he requires.
   
   All professionals operating within a given geographical area , can only join the association recognized in that area , except in circumstances described in Article 8.

Article 34 - Branches

1. All establishments other than the principal one , belonging to the same legal entity are called branches.
   
2. All branches fulfilling legal requirements should adhere to the local Estate Agents Association in the region they are operating in , pay their subscription as well as a special FNAIM subscription.
   
3. However for those branches operating in the same region as the principal entity , it is left to the local Association to decide whether the branches should be considered as branches or annex offices.
   
4. In this last case, if any service is required from FNAIM , the office is assimilated to a branch.
   
5. The Manager of a Branch recognised by the Regional Authority ( Prefecture ) is considered to be a representative of the mother firm.
   
6. If the branches have not applied for membership , the mother firm and all branches are stricken out from the local Associations . In case of a membership application being refused , the mother firm can appeal to the Federal Commission of Discipline for review and ruling.
   

Article 35

All members admitted by the local Chamber and the FNAIM Guarantee Fund are invited to use the Federal Logo on all their printed communication or advertising material.
In case of resignation, termination of membership, change of ownership or other event resulting in the withdrawal of the Guarantee from the FNAIM Guarantee Fund, the member commits himself irrevocably to the immediate withdrawal from public view of all printed material, brochures and other advertising supports bearing the FNAIM label.
If that commitment is not fulfilled , and 48 hours after issue of proper summons, the local Chamber to which the member belonged or the FNAIM, may sue together or separately to obtain full compliance. They have both formal authority to do so, notwithstanding any other action that the FNAIM Guarantee Fund may decide to initiate, if it so wishes.
They may in particular solicit from the Judge of the Court deemed competent to rule on the matter , the deposit into the hands of a designated legal representative any written material or document bearing the FNAIM label found in the possession of the former member.

Article 36 - Corresponding member

As per Article 9, the title of corresponding member maybe granted to some real estate professionals from countries of the European Union , in order to open and maintain contacts between professionals of the Union .

1. Terms and Conditions ( all have to be met )
   
   Within the frame of the Free Market for services as defined by the laws of the European Community
   
   The professional:

   a) has no affiliate nor other establishment in France .
   b) is a member of a professional organisation recognised by the FNAIM in the country he operates in.
   c) applies for membership at a local FNAIM branch or at the Federation who will then direct him to an association best fitting with his needs.
   d) provides all the information required to the local Chamber for the crosschecking of his status and reputability, prior to his admission to membership subject to the approval of the FNAIM Guarantee Fund.
   e) applies through the Chamber for admission to the FNAIM Guarantee Fund.
   f) commits himself to follow the FNAIM Code of Ethics and to allow the control of his activities in France.
   g) pays a special subscription fee to FNAIM , to the local Chamber and to the FNAIM Guarantee Fund as set by these organisations.

   The terms and conditions described under d), e),and f) are considered to be met by professionals of the European Union already defined as " European Partners of FNAIM" as per Articles 4 b) and 5 b) of the Statute Book and who already benefit from such approvals.

2. Title

   The professional admitted under these conditions has the right to bear the title " Corresponding Member of the FNAIM Real Estate Chamber of "
   
   This title does not allow him to commit his Chamber or the Fnaim nor does it give him any particular authority.
   
   If one of the conditions above , and for whatever reason is not met anymore , the professional concerned will loose his right to the title of Corresponding Member and any mention of it should be erased or withdrawn from all documents immediately.

3. Miscellaneous provisions

   The Corresponding Member cannot occupy any position of responsibility in a Chamber, a region or in the FNAIM Board.
   
   His membership is taken in account for the calculation of the number of delegates , the Chamber he belongs to , is allowed to send to the Federal General Assembly.
   
   He must attend the General meetings of his Chamber as an observer with a consultative vote
   
   All articles and rules of this Internal Rules of FNAIM apply to Corresponding Members , when they are not incompatible with the provisions of this article.

PART 2 - ETHICS

GENERAL DUTIES OF THE PROFESSIONAL

Article 37 - Scope of activity

The real estate professional may do his business wherever he wants, without any territorial restrictions.

He operates from premises adapted to the requirements of his profession in terms of office space and appearance.

A FNAIM professional may run other businesses, if they are without any connection to the Real Estate business.

These other activities must be run from separate premises except when special derogation has been granted by the Chamber. When they are linked to the Real Estate business, and require guarantees, these businesses must be conducted under another legal entity , another commercial name and from different premises.

Article 38

The positions of President or Board member of the FNAIM, President or member of the Board of a local Chamber ,and generally of any organisation affiliated to FNAIM are not compatible with any other positions held in organisations having similar aims and objectives to FNAIM's.

This does not apply to existing Chambers belonging to both FNAIM and CNAB , who may keep their structure.

Article 39

The FNAIM professional works within the frame of the law and Regulations.

He does not embark in any activities , queries or interventions that are not necessary to the mandate given by the principal.

He does not act or behave in any way that can bear prejudice to FNAIM , his Chamber or the profession.

Article 40 Methods, Advertising

A professional may use any advertising media or promotional means he sees fit to develop his customer base provided they comply in form and spirit with the law , regulations, this very Rulebook and the Code of Ethics of the profession.

The advert must be truthful , balanced and honest , and in accordance with the recommendations from the FNAIM and the Advertising Control Authority ( Bureau de Verification de la Publicite - BVP ) or any other agreements pledged by the Federation.

Furthermore , the advert must mention that the advertiser belongs to the FNAIM either with a losange logo or any other means defined by his Chamber in agreement with the media.

Article 41

The professional has good relationships with members of other professions, civil servants and local authorities with which their work put them into contact.

He respects the professional independence of each of them.

Article 42

The Real estate professional is under obligation of confidentiality. This confidentiality does not apply when:

• information is required for a lawsuit
• information is required by the Chamber , the Regions and the Federation
• information has to be given to the Federal Arbitration Commission
• information has to be given to the Federal Discipline Commission

Article 43 -Specific ethics

Each specialised Federal Commission is competent to establish and enforce ethics rules relative to their respective specialties, provided these rules do not contravene the general rules mentioned above.

To be applicable , these rules have to be submitted by the Board and approved by the General Meeting. They become integral part of the internal rules.

Each Chamber and each Region may complement these rules, taking in account their Geographical situation , and local traditions , but still following the general principles established by the specialised Federal Commission.

RELATIONS WITH THE CUSTOMER

Article 44 - General principle

All Real estate professionals do their business with proficiency, honesty, trustworthiness and integrity with the overriding concern of looking after his customer's interests to the best of his abilities.

Article 45 - Fees

Real estate professionals are entitled to a fee for services provided.

Article 46 - Documents and Funds

Real estate professionals are holders in trust of documents and funds from customers received during the course of their activity.
In conformance to their mandate, it is imperative that they settle monies due to on time.

Article 47 - Carrying out the mandate

Real Estate professionals are under the obligation to stay neutral and to communicate the information they have to the interested parties. Any pressure of any sort applied in order to obtain a direct or an indirect agreement is strictly forbidden. The professionals appointed by a minor or a mentally deficient person must obtain consent from their legal representatives.

Article 48 - Enforcement of the Ethics rules

In case of a claim by a third party , the professional is under the obligation to disclose within 15 days , all the information required by the professional organisations he is a member of. This period may be extended under specific rules.

Once the deadline is passed and with no response forthcoming, the matter will be referred to the Commission of Discipline.

Article 49 - Procedures

When a member is considering a suit that may be detrimental to the interests of his profession , he has to advise his Chamber about his intentions quickly , and the Chamber in return must give him a motivated advice within 30 days.

If this deadline passes without any advice coming from the Chamber, it is considered that this constitutes a tacit approval of the action by the member.

The member who starts a suit, against the advice of his Chamber, does it under his own and entire responsibility and will bear all the consequences of the sanctions that may be eventually imposed on him by the Chamber.

RELATIONS WITH OTHER PROFESSIONALS

Article 50 - Courtesy

The Real Estate professionals have a moral duty to support each other. They shall refrain from any dishonest or malicious activity ,and work within the spirit of fair competition. They shall not engage in any activity that would aim to discredit or harm the reputation of a fellow professional.

Article 51 - Collaboration

When fellow professionals decide to work together to finalise the same transaction , they should beforehand:

• Exchange information on all terms and documents in their hands relating to that particular deal, including copy of their own mandate.
• Put into writing details of their expected fees and how they could be amended.

At all events ,each agency is responsible for the remuneration of its employees and for payment of fees to other professionals in case of unilaterally requesting their help .

Article 52 - Employees

Real estate professionals who are considering hiring an employee who is working or has been working for a fellow professional, have to advise the latter of their intentions. If the employee works for a Chamber or a Region, the President of that organisation has to be advised.

Article 53 - Other cases

Cases not mentioned in this chapter as well as potential difficulties of interpretation may be referred to the Board of the local Chamber for advice.

PART 3 - ARBITRATION

A - Chambers and Regions

Article 60

If no amicable settlement can be reached, an arbitration procedure may be initiated between members of FNAIM Chambers for all professional conflicts , with the exception of those that come under the jurisdiction of the Courts. The rules of the different Chambers and Regions belonging to the FNAIM should account for this possibility.

To deal with arbitration procedures, each FNAIM Chamber and each FNAIM Region will have a Commission of Arbitration of a minimum of 6 members among which 3 at least will constitute an arbitration panel who will rule on each case submitted to him.

Article 61.

In case of a dispute between two members of the same Chamber , the dispute should be referred for arbitration to that same Chamber . The Chamber can then delegate its powers to the Region .

The Region ,which may delegate its powers to the Federal Commission of Arbitration , has jurisdiction over disputes between members of different Chambers as long as these are affiliated to the same Region .

In case of dispute between members of different Regions , the arbitration is referred to the Federal Commission of Arbitration .

Article 62

Members wanting to use the arbitration procedure are required to submit a formal request by registered letter addressed to the President of the competent Organisation .

The letter must summarise briefly the circumstances of the dispute ,indicate names and addresses of the parties involved and state their claims .

Article 62 bis

The arbitration panel is set up by the President of the competent Organisation ( President of a Chamber , President of a region , President of the Federal Commission of Arbitration ) as following :

By drawing names amongst the members of the commissions of arbitration - after withdrawing names of those who could have a personnel interest in the matter . If the President of the relevant Organisation has an interest in the matter to be arbitrated upon , his assistant or the Vice president will preside the draw . The number of members of the arbitration panel is not limited but members should be a minimum of 3 and the number must be an odd number.

Article 63

Notice is given by the President of the Organisation having jurisdiction over the matter to the other party by registered letter within 15 days of receipt of the request . The defendant is asked whether he accepts the arbitration of the organisation and to provide all information relevant to the case as well as an account of his views on the matter .

If the defendant has not responded within the maximum deadline of 15 days after receipt of the notice , a default report is issued and communicated to the parties .

Article 64

After acceptation of the arbitration procedure by the defendant , the President of the competent Organisation notifies the composition of the arbitration tribunal to the interested parties and this prior to any debate .

Each party has the right to challenge one arbitrator only . In case of this happening the President of the competent organisation replaces the arbitrator (s) challenged.
The panel is then finally constituted and its composition is part of the arbitration settlement document that is signed by both parties.

Article 65

Prior to the beginning of the arbitration procedure, both parties are due to sign an arbitration settlement document.

That document may be established with minutes of the proceedings in front of the arbitrators or by separate affidavit.

It explains the nature of the claim, indicates the name and titles of the arbitrators; it also states the mission of the arbitrators and indicates the deadline that they are given to rule over the matter.

It states that both parties renounce to appeal or use any other type of recourse against the arbitration ruling which is conclusive and final. It gives authority to the arbitrators to set fair amicable settlements which are not liable to follow the rules, terms and deadlines fixed by Courts.

The arbitrators may require investigations, information, order experts reports, and sort difficulties they may encounter to fulfil their task. They only rule on the matters mentioned on the settlement document.

Article 66

Only parties having legal authority on the matter in dispute may be involved in the settlement.

Article 67

In case of death, refusal, departure or absence of any of the arbitrators, their replacement is ensured by the President of the competent organisation , each party having the right of challenging his choice of arbitrator if they had not already done it before.

Article 68

Each party is due to submit their defense and justificative documents to the arbitrators upon request. The arbitrators may rule solely upon presentation of these documents.

The arbitrators may decide at whim upon hearing the parties together or separately. The parties have to attend the hearings when summoned by the arbitrators.

Parties have to be present in person, but the may be assisted at the hearing by an adviser of their choice.

Copies of documents and conclusions have to be passed to the adverse party.

Article 69

Except when an extended deadline is stipulated in the settlement, arbitrators have to rule on the dispute within 6 months of the writing of the settlement.The deadline may be extended with the agreement of both parties.

The arbitrators rule after deliberation and majority vote. The ruling is signed and dated by each of them.

If any arbitrator refuses to sign the ruling, this is indicated in the ruling , but this does not affect the validity of the ruling in any way. It remains as if it had been signed by all.

Article 70

The arbitration ruling is confirmed by an enforcement order from the President of the Courts under which jurisdiction the arbitration operates.

If the ruling has not been enforced within 3 days, it is deposited at the Courts by one of the arbitrators within a maximum of 20 days after the date of the ruling.

Furthermore, arbitration rulings confirmed by an enforcement order are registered within 4 weeks from the date of the order.

Article 71

The intervention of the Arbitration Commission is free of charge. Costs are born by the loosing party or parties following the arbitration ruling. Advances for costs and expenses are funded by the claimant.

PART 4 : DISCIPLINE

A - Chambers

Article 72

Each Chamber establishes a Commission of Discipline, made up with at least 3 members whose duty is to deal, upon request of the Chamber's Management , with all infringements to the rules of the Chamber, the Code of Ethics, the present FNAIM rules and generally with any violation of the Law, Regulations and professional ethics.

Article 73

Members of the Commission of Discipline are designated in accordance with the statutes of the Chamber d for a duration of 3 years. The mandate may be renewed for a further period.

Article 74

Persons prosecuted by the Commission of Discipline, are heard upon summons, notified by registered letter with acknowledgement of receipt at least 15 days before the date set for the Hearing, unless there is an emergency which would justify to bring the date forward . In case of absence at the Hearing without reason validated by the Commission, the ruling is pronounced by default.

Article 75

The Commission reports to the Board about the matter, and may propose the following sanctions:

• The member is put under observation
  
• The member gets a caution
  
• The member gets a final warning
  
• The membership is terminated

The Board intervenes as a last resort on the first 3 sanctions. The Board is the decider when a membership is terminated . The individual concerned is advised by registered letter with acknowledgement of receipt or by judiciary act of the decision that has been taken. When appeal is possible, and particularly in the cases described in Article 77 hereunder, the notification has to mention the possibility of appeal and the deadlines set in the following articles.

B - FNAIM Region and appeal

Article 76

Each Region sets up a Commission of Discipline ( Disciplinary panel ), to rule on appeals against decisions taken by the Commissions of Discipline of the Chambers affiliated to the Region in cases described hereunder.

This Commission has a minimum of 5 members elected by the Board of the Region, in conformance with its statutes and for a period of 3 years ( renewal possible ).

Article 77

All decisions of a Chamber to terminate a membership maybe appealed against.

However no appeal may be heard when the sanction taken has followed the proper procedures and concerns:

• The non payment of the subscription
  
• The violation of the law or rules that would normally result in the withdrawal or the non renewal of the Professional licence(s).

Article 78

The appeal suspends the sentence. To be valid, it must be lodged by registered letter with acknowledgement of receipt addressed to the President of the Region within 15 days of the notification specified in Article 75. The President of the Region immediately asks the Regional Commission to deal with the matter.

The appealing Party is then heard upon summons sent by registered letter with acknowledgment of receipt, 15 days before the date set for the Hearing, unless an emergency occurs that would justify an earlier date.

In case of absence which in the view of the Regional Commission, is without justifiable cause, the Commission will rule by default.

The decision on the Appeal must be taken within a maximum of 2 months after it has been lodged. If that is not met, the appealing party may ask the Federal Commission of Discipline by registered letter with acknowledgement of receipt to rule on the case.

Article 79

The Regional Commission of Discipline, may confirm, amend or quash the decision taken by the Board of the Chamber in first instance, and informs the President of the FNAIM Region of its ruling.

The President advises the party concerned as well as the President of the Chamber involved, about the ruling by registered letter with acknowledgement of receipt or by judiciary Act. This notification must include details of the possibility to appeal to the Federal Commission of Discipline as per the following articles.

C - Federal Commission and Recourse

Article 80

The Commission is competent to rule on any recourse against a decision by a Regional Commission of Discipline, based on a violation of its rules.

The Commission is competent to rule on any refusal to admit a new member or an affiliated office.

The Commission is competent to judge any President of Region, Chamber or Commission and any Federal Bureau Member that has been referred to him by the President of the Federation. Sanctions are the same as described by Article 75.

The Commission is also competent to judge on disputes between different member organisations of FNAIM.

Article 81

The Recourse in matters of Discipline suspends the sentence. In order to be valid, it has to be lodged by registered letter with acknowledgement of receipt within 15 days from the date of the notification described in Article 79. The President of the Federation refers the matter to the Federal Commission of Discipline immediately.

The appealing Party is then heard upon summons sent by registered letter with acknowledgment of receipt, 15 days before the date set for the Hearing, unless an emergency occurs that would justify an earlier date.

In case of absence which in the view of the Regional Commission, is without justifiable cause, the Commission will rule by default.

Unless an extension to the deadline is granted by the President of the Federation, the Commission rules on the matter within 3 months of the date of the referral. The ruling has to be justified. It is final.

The decision is notified by the President of the Federation to the party concerned and to the Presidents of the Chamber and the Region involved, using the procedure described in articles 75 and 79.

Article 82

No notification of termination of membership can be made to the Guarantee Fund, until all deadlines set for appeals and other recourses have expired and a final decision has been taken.

Article 83

A professional whose membership to a FNAIM organisation has been terminated for disciplinary reason, cannot be or remain a member of any other Organisations affiliated to FNAIM.