IBBA Broker Code of Ethics
International Business Brokers
Association, Inc.
This code of Ethics was enacted by the Board of Directors
of the International Business Brokers Association and is a part
of the bylaws of the association. This code is for use by all
members of the association as a means of establishing a uniform
standard of conduct for business brokers. We adhere to the ethical
principle of business and believe the investment risk and effort
required to build a profitable going business or enterprise deserves
a fair evaluation and a straightforward, professional, and honest
presentation to both seller and buyer.
- Article One: The business broker should keep himself/herself
informed as to trends affecting business opportunities.
- Article Two: The business broker shall make a reasonable
effort to protect the public and all parties to a transaction
against fraud, misrepresentation, or unethical practices in the
area of business opportunities.
- Article Three: The business broker shall have a responsibility
to recommend that clients use attorneys and tax accountants for
independent advice on transactions.
- Article Four: The business broker should keep in a
special bank account, separated from his/her own funds, monies
coming into his/her possession in trust for other persons.
- Article Five: The business broker, for the protection
of all parties with whom he/she deals, should see that financial
obligations and commitments regarding business opportunity transactions
of which he/she is a part are in writing, expressing the exact
agreement of the parties. He/she should also see that copies
of such agreements are placed in the hands of all parties involved.
- Article Six: A business broker, in accepting employment
as an agent, pledges himself/herself to protect and promote the
interests of the client. This obligation of absolute loyalty
and honesty to his/her client's interest is primary, but it does
not relieve the business broker from the obligation of dealing
fairly with all parties to the transaction.
- Article Seven: Since the business broker is representing
one or another party to a transaction, he/she should not accept
compensation from more than one party without full knowledge
of all parties to the transaction.
- Article Eight. The business broker shall not serve
as both principal and consultant on a transaction unless a full
disclosure
is made in writing to all principals involved.
- Article Nine: The exclusive listing of property should
be urged and practiced by the business broker.
- Article Ten: The business broker, when acting as an
agent in the management of a business, should not accept any
commission, rebate, or profit on expenditures made for an owner
without the owner's knowledge and consent.
- Article Eleven: The business brokers should not undertake
to make an appraisal that is outside or beyond the scope of his/her
experience without first obtaining the assistance of an authority
on such types of property unless the extent or lack or experience
of the business broker is fully disclosed to the client.
- Article Twelve: A business broker when making a formal
appraisal of a business opportunity should not render an opinion
without careful and thorough analysis and interpretation of all
market and economic factors affecting the value of the property.
- Article Thirteen: The business broker should not undertake
to make an appraisal or render an opinion of value on any property
when he/she has a present or contemplated interest unless such
an interest is specifically disclosed in the appraisal when his/her
employment or fee is contingent upon the amount of his/her appraisal.
- Article Fourteen: The business broker should not submit
or advertise business without authority; in any offerings, the
price quoted should not be other than that agreed upon with the
owners as the offering price. A business broker should always
have written authorization to sell or purchase as the case may
be from the prospective seller or purchaser. Said in writing
shall include all the material of the terms of the sale or purchase,
including price, term of the agreement, and compensation to be
paid to the business broker.
- Article Fifteen: All bona fide written offers will
be submitted to the seller. The decision to accept or reject
an offer remains with the seller at all times.
- Article Sixteen: The business broker will not engage
in the practice of disclosing one buyer's offer to another buyer
as a sales technique.
- Article Seventeen: The business broker should seek
no unfair advantage over his/her fellow brokers, and should willingly
share with them the lessons of his/her experience and study.
- Article Eighteen: The business broker should conduct
his/her business to avoid controversies with his/her fellow brokers,
cooperate with the association and its officers in all matters,
including investigations, censure, discipline, or dismissal of
members who, by their conduct, prejudice their professional status
or the reputation of the association.
- Article Nineteen: In the best interest of the association,
society, and his/her associates, the business broker should be
loyal to his/ her community and active in its work.
- Article Twenty: The business broker shall not deny
equal professional services to any person for reasons of race,
creed,
sex, or country of national origin. The business broker shall
not be a party to any plan or agreement to discriminate against
a person or persons on the basis of race, creed, sex, or country
of national origin.
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