| ARTICLE XV: CODE OF ETHICS
Section 1:
It is duty of the Broker to protect
the public against fraud, misrepresentation
practices in the yacht brokerage
profession. Brokers should
endeavor to eliminate any which
could be damaging to the public
or to the dignity and integrity
of the profession, and assist
the California Yacht Brokers
Association in regulating brokers
and salespersons in California.
Section 2:
In accepting employment as an
agent. Broker pledges himself
to protect the client. This
obligation of absolute fidelity
to the client's interest is
paramount, but it does not
relieve the Broker from obligation
of dealing fairly with all
parties to the transaction.
Section 3:
Since the Broker may be representing
one or more parties to a transaction,
he should not accept compensation
from more than one party under
any circumstances without the
full knowledge of all parties
to the transaction.
Section 4:
Broker, for the protection of
all parties with whom he deals,
should see that financial obligations
and commitments regarding brokerage
transactions are in writing
and express the exact agreement
of the parties. Copies of such
agreements must be placed in
the hands of all parties involved
at the time the agreements
are executed, or as soon thereafter
as practicable.
Section 5:
Broker must segregate from his
own funds all monies being
held for other persons. Separate
special bank trust accounts
should be used for this purpose.
Section 6:
Broker should not be a party
to the naming of a false consideration
in any document. No offer should
be submitted either to an owner
or to a cooperating Broker,
without an adequate cash deposit
on hand from the offerer.
Section 7:
In the event that more than one
formal written offer on a specific
vessel is made prior the completion
of the sale, the Broker must
present or cause to be presented
to the owner of the vessel,
any offer presented to the
Broker, whether by a prospective
purchaser or another Broker.
Section 8:
Broker should neither acquire
nor sell an interest in, or
buy for himself, any member
of his family, firm, or any
entity in which he has substantial
interest, vessels listed with
him, or his firm, without making
the true situation known to
the listing owner or prospective
purchaser.
Section 9:
Broker should use his best efforts
to ascertain all pertinent
facts concerning every vessel
for which he accepts the agency
so that he may fulfill his
professional obligation to
avoid error, exaggeration,
misrepresentation or concealment
of pertinent facts.
Section 10:
It is the duty of the Broker
to be well informed on current
market conditions in order
to be in a position to advise
clients as to the fair market
value of vessels.
Section 11:
Broker should not undertake to
make an appraisal or render
an opinion of value on any
vessel where he has a present
or contemplated interest unless
such interest is specifically
disclosed to all parties to
the transaction. Broker should
not undertake to make an appraisal
that is outside the field of
his experience unless he obtains
the assistance of an authority
on such types of vessels, or
unless the facts are fully
disclosed to the client. In
such circumstances, the authority
so engaged should be identified
and his contribution to the
appraisal should be clearly
set forth.
Section 12:
Broker should always recommend
the timely employment of an
independent qualified marine
surveyor as a condition precedent
to the completion of a brokerage
transaction.
Section 13:
Signs giving notice of any vessels
for sale, rent, lease or exchange
should not be placed on any
vessel by more than one Broker,
and then only if specifically
authorized by the owner.
Section 14:
Broker should not submit or advertise
vessels without authority,
and in any offering, the price
quoted should not be other
than that agreed upon with
the owner as the offering price.
Section 15:
Broker in his advertising should
be especially careful to present
a true picture and should neither
advertise without disclosing
his identity, nor permit others
in his brokerage entity to
use individual names or telephone
numbers, unless the connection
with the Broker is obvious
in the advertisement.
Section 16:
Broker should not engage in activities
that constitute the practice
of law and should recommend
that legal counsel be obtained
when the tax liability or legal
interest of either party requires
it.
Section 17:
Broker should cooperate with
other Brokers on vessels listed
with him whenever it is in
the interest of the client.
Negotiations concerning a vessel
listed exclusively with one
broker should be carried on
with the listing broker, not
the owner, except with the
express consent of the listing
broker. All shared commission
agreements should be negotiated
prior to the submission of
any Offer to Purchase.
Section 18:
The agency of a Broker who holds
an exclusive or central listing
should be respected. A Broker
cooperating with the listing
Broker should not invite the
participation of a third Broker
without the express consent
of the listing Broker.
Section 19:
A Broker should not voluntarily
disparage the business practice
of a competitor, nor volunteer
an opinion of a competitor's
transaction. If his opinion
is sought, it should be rendered
with strict professional integrity
and courtesy.
Section 20:
A Broker should seek no unfair
advantage over his fellow Brokers
and should willingly share
with them the lessons of his
experience and study.
Section 21:
In justice to those who place
their interests in his care,
the Broker should endeavor
always to be informed regarding
laws, proposed legislation,
governmental orders, and other
essential information and public
policies which affect those
interests.
Section 22:
Broker should keep himself informed
as to movements affecting recreation
and yachting in his community,
state and the nation so that
he will be better able to contribute
to public thinking on matters
of taxation, legislation, marine
use, waterfront planning, and
other issues affecting boating
interests.
Section 23:
A Broker should so conduct his
business as to avoid controversies
with his fellow Brokers. In
the event of a controversy
between Brokers who are members
of the California Yacht Brokers
Association, such controversy
should be arbitrated in accordance
with the arbitration procedures
of the association rather than
litigated.
Section 24:
When a Broker is charged with
unethical practice, he should
place all pertinent facts before
the proper tribunal of the
Association for investigation
and judgement.
Section 25:
Controversies between Brokers
who are not members of the
same local chapter should be
submitted to arbitration in
accordance with the arbitration
rules of the California Yacht
Brokers Association.
Section 26:
In the event a dispute involves
both member brokers and non-member
parties, CYBA will conduct
an independent investigation
if requested to do so by an
interested party. All findings
of fact and recommendation
will be forwarded by the Association
to the California Department
of Boating and Waterways for
appropriate action.
Section 27:
It is in the best interests of
society, of his associates,
and of his own business that
the Broker be loyal to the
California Yacht Brokers Association
and be active in its work |
