This Code of Ethics was enacted by the Board of Directors of the Arizona Association of Business Brokers and is a part of the Bylaws of AZBBA by reference in Article XIII of said bylaws. The Code is for use by all members of AZBBA as a means of establishing a uniform standard of conduct for brokers.
Additions may be made to the Code from time to time by the Board of Directors so long as the new provisions are not inconsistent with the existing Code.
We adhere to the ethical principles of business and believe that the investment risk and effort required to build a profitable going business or enterprise is a fair evaluation and a straight forward, professional and honest presentation to both seller and buyer.
ARTICLE ONE. The broker should keep himself informed as to trends affecting Business opportunities; attend monthly meetings of the Association and periodic educational seminars.
ARTICLE TWO. The exclusive right to sell listing of businesses will be urged and practiced by the Business Broker whenever possible. Any business represented that is not an exclusive right to sell listing must be disclosed to other brokers or interested parties.
ARTICLE THREE. The 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 FOUR. The broker shall have a responsibility to recommend that clients use legal and tax counsel for independent advice on transactions.
ARTICLE FIVE. The broker shall handle client funds according to the rules and regulations of the Arizona Department of Real Estate.
ARTICLE SIX. The broker, for the protection of all parties with whom broker deals, must see that all documentation regarding business opportunity transactions, of which broker is a part, are in writing-, expressing the specific and exact agreement of the parties, and that signed copies of such agreements are placed in the hands of all parties involved.
ARTICLE SEVEN. A broker, in accepting employment as an agent, pledges himself to protect and promote the interest of the client. This obligation of absolute loyalty and honesty to the broker’s client’s interest is primary, but it does not relieve the broker from the obligation of dealing fairly with all parties to the transaction.
ARTICLE EIGHT. Since the broker is representing one or another parties to a transaction, broker must not accept compensation from more than one (I) party without the full knowledge and consent, in writing, of all parties to the transaction.
ARTICLE NINE. Broker shall not serve as both principal, consultant, or agent on a transaction unless a full disclosure is made in writing to all principals involved.
ARTICLE TEN. The exclusive listing of property should be urged and practiced by the broker.
ARTICLE ELEVEN. The broker should not undertake to make an appraisal or evaluation that is outside or beyond the scope of broker’s experience without first obtaining the assistance of an authority on such types of property, unless the extent or lack of experience of the broker is fully disclosed to the client.
ARTICLE TWELVE. A 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 broker should not undertake to make an appraisal or render an opinion of value, on any business property when broker has a present or contemplated interest, unless such interest is specifically disclosed in the appraisal when broker’s employment or fee is contingent upon the amount of the appraisal.
ARTICLE FOURTEEN. The broker may not submit or advertise business without authority; in any offering the price quoted may not be other than that agreed upon with the owner as the offering price. A broker must always have written authorization to sell or purchase, as the case may be, from the prospective seller or purchaser. Said written authorization shall include all the material terms of the sale or purchase including price, term of agreement and compensation to be paid the broker.
ARTICLE FIFTEEN. All written offers, signed by a purchaser, must be submitted to the seller; the decision to accept or reject an offer remains with the seller at all times.
ARTICLE SIXTEEN. The broker should seek no unfair advantage over fellow brokers, and should willingly share with them the lessons of broker’s experience and study.