Approved Code No. 392 Registry No. 1743-16 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR C·OMPETITION 

FOR THE 

REAL ESTATE BROKERAGE 

INDUSTRY 

AS APPROVED ON APRIL 9, 1934 

WE DO OUR PART 

U .. Df..Pr'·-~ TORY 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1934 

l 

I/ I j 

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Approved Code No. 392 

CODE OF FAIR COMPETITION 

FOR THE 

REAL ESTATE BROKERAGE INDUSTRY 

As Approved on April 9, 1934 

ORDER 

CODE OF FAIR COMPETITION FOR THE REAL ESTATE BROKERAGE INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of the National Industrial 

Recovery Act, approved June 16, 1933, for approval of a Code of 

Fair Competition for the Real Estate Brokerage Industry, and 

hearings having been duly held thereon and the annexed report on 

said Code containing findings with respect thereto, having been 

made and directed to the President. 

NOW, THEREFORE, on behalf of the President of the United 

States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 

pursuant to authority vested in me by Executive Orders of the President, including Executive Order No. 6543-A, dated December 30, 

1933, and otherwise; do hereby incorporate by reference said annexed report and do find that said Code complies in all respects with 

the pertinent provisions and will promote the policy and purposes 

of said Title of said Act; and do hereby order that said Code of 

Fair Competition be and it is hereby approved. 

Approval recommended : 

K. l\,f, SIMPSON' 

HUGH s. JOHNSON' 

Ad1ninistrator for Indi1,Stria:l R ecovery. 

Division Administrator. 

APRIL 9, 1934. 

51896 °-482-48--34 ( 259) 
\ 

REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Srn: The original Code of Fair Competition £or the Real Estate 

Brokerage Industry was submitted on August 30th, 1933, by the 

Brokers Division of the National Association of Real Estate Boards 

to cover " Real Estate and Insurance Brokerage " business. This 

Code was made a part of a general code covering related Real 

Estate activities. Subsequently it was deemed advisable to segregate this blanket Real Estate Code into its various activities and 

entertain applications £or Codes of Fair Competition £or such 

divisions thereof £or which a Code might be applicable. A Code 

for the Real Estate Brokerage Industry was therefore presented by 

the National Association of Real E state Boards; an unincorporated 

membership society, representing over 10,000 known members o:f 

the Industry and truly representative of such activity. Several 

revisions of the Code were made prior to the public hearing which 

was held on January 10th, 1934. The Code was revised during the 

recess of this hearing and submitted in its final form £or approval. 

Every person who r equested an appearance was properly heard in 

accordance with statutory and regulatory requirements. 

The Real Estate Brokerage Industry includes the representation 

of others £or compensation, fee or valuable consideration, in one 

or more transactions as a whole or partial vocation in any of the 

following activities : Selling or offering £or sale, buying or offering 

to buy, exchanging or offering to exchange, or negotiating £or the 

sale, purchase or- exchange of r eal property; or leasing or offering 

to lea e, renting or offering to rent, or negotiating £or the lease 

or rental of real property; and the collection of rent, appraising or 

offering to appraise the value of real property, the brokerage or 

writing of insurance, or the negotiating and procuring of loans on 

real property. 

A survey conducted by the Code Committee of the National Association of Real Estate Boards indicates that the sales brokerage 

business of their 10,641 members in 1928 embraced 236,055 transactions aggregating in volume of dollars $1,534,621,444. By way 

of indicating the decline in their activity the same number of 

members in 1933 handled 75)263 transactions, aggregating in volume 

of dollars $264,937,184. indicating that the volume in 1933 was 

only 17.2 per cent as great as that in 1928. The same survey indicated th.at in 1928 37,583 people were employed of which 23,079 

were commission employees. In 1933 there were 30,370 people 

employed of which 16,555 were commission employees. The same 

survey indicates that this organization wrote 1,055,465 insurance 

policies amounting to $445,445,510. 

(260) 
261 

There is no real labor proble1n in this Industry as most of the 

offices are not working longer than forty hours per week. Provision 

has, however, been made in this Industry for the payment of overtime at the rate of one and one third times the normal rate of any 

employee so employed for all hours worked in excess of forty hours 

per week. The provisions of this Code also provide for an increase 

in the established minimum wage. The Fair Trade Practice provisions as incorporated in this Code, we believe, will result in the elimination of certain possibilities now existing for unfair competition. 

Article I. States the purpose of the Code. 

Article II. Accurately defines specific terms applicable to the Real 

Estate Brokerage Industry as used in this Code. 

Article III. The maximum hours are limited to forty hours per 

week. In cases of necessity and when additional labor is not available or temporary substitution is found impracticable, any employee 

. may be permitted to work in excess of the maximum daily and 

weekly hours, provided, that one and one third times the normal 

wage rate per hour is paid for each hour of overtime so worked. 

The limitation of hours does not apply to those employees engaged 

in a managerial, executive or supervisory capacity who receive not 

less than Thirty-Five Dollars per week. 

Article IV. The minimum wages of all employees is dependent 

upon population of cities and towns. Provision is also made for 

the adjustment of wages above the minimum fixed in this Code if 

such adjustment has not been made prior to the approval of this 

Code. 

Article V. Provides that no employer shall employ any person 

under 16 years of age and that no person under 18 years of age shall 

be employed at operations or occupations which are hazardous in 

nature or dangerous to health. This Article also sets forth mandatory provisions respecting the rights of employees to organize and 

bargain collectively. It also provides for matters having to do with 

reclassification of employees, standards for safety and health, the 

observance of state laws and the posting of complete copies of this 

Code so that they are accessible to employees. 

Article VI. Establishes a Code Authority consisting of eleven 

members to be selected by a fair method of election so as to be truly 

representative of the Industry, subject to the approval of the Administrator. In addition to the eleven members above named there may 

be one and not more than three members, without vote, and without 

compensation by the Industry, to be appointed by the Administrator for such terms as he may specify. In addition to the or~anization of the Code Authority, the powers and duties thereat are 

outlined in this Article. 

Article VII. Sets forth Trade Practices for the Industry. 

Article VIII. This Code and all the provisions thereof are expressly made subject to the right of the President in accordance with 

subsection (b) of section 10 of the Act, from time to time to cancel 

or modify any order, approval, license, rule, or regulation issued 

under said Act. 

Article IX. No provision of this Code shall be so applied as to 

permit monopolies or n1onopolistic practices or to eliminate, oppress, 

or discriminate against small enterprises. 
262 

Article X. Provisions of this Code shall not supersede or modify 

the standards, requirements, or regulations established by the Real 

Estate Licensing Laws of any state for the Real Estate Brokerage 

Industry, where such standards, requirements, or regulations are 

more stringent than the provisions of this Code. 

Article XI. This Code shall become effective beginning ten days 

after its approval by the Administrator. 

The Deputy Administrator in his final report to me on said Code 

having found as herein set forth and on the basis of all the proceedings in this matter ; 

I find that: 

(a) Said Code is well designed to promote the policies and purpo es of Title I of the National Indu trial Recovery Act, including 

removal of obstructions to the free flow of interstate and foreign 

commerce which tend to diminish the amount thereof and will provide for the general welfare by promoting the organization of Indu try for the purpose of cooperative action among the trade groups, 

by inducing and maintaining united action of labor and management 

under adequate governmental sanctions and supervision, by eliminating unfair competitive practices, by promoting the fullest possible 

utilization of the present productive capacity of industries, by avoiding undue re. ·triction of production ( except as may be temporarily 

required), by increasing the consumption of industrial and agricultural products through increasing purchasing power, by reducing 

and relieving unemployment, by improving standards of labor, and 

by otherwise rehabilitating Industry. 

(b) Said Industry normally employs not more than 50,000 

employees; and is not classified by n1e as a major Industry. 

( c) The Code as approved complies in all respects with the pertinent provisions of said Title of said Act, including without limitation subsection (a) of section 3, subsection (a) of section 7, and subsection (b) of section 10 thereof; and that the applicant association 

is an industrial association truly representative of the aforesaid 

Indu try, and that said association imposes no inequitable restrictions on admission to membership therein. 

( d) The Code is not designed to and will not permit monopolies 

or monopolistic practices. 

( e) The Code is not designed to and will not eliminate or oppress 

small entP,rprises and will not operate to discriminate against them. 

(f) Those engaged in other steps of the economic process have 

not been deprived of the right to be heard prior to approval of said 

Code. 

For these reasons, therefore, this Code has been approved. 

Respectfully, 

APRIL 9, 1934. 

HUGH S. JOHNSON, 

Adrninistrat01·. 
CODE OF FAIR COMPETITION FOR THE REAL ESTATE 

BROKERAGE INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the N a.tional Industrial 

Recovery Act, this Code is established as a Code of Fair Competition for the Real Estate Brokerage Industry, and its provisions 

shall be the standards of fair competition for such Industry and 

are binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

Wherever used in this Code or any supplement appertaining 

thereto, the terms enumerated in this Article shall have the meanings 

herein defined, unless the contBxt shall otherwise clearly indicate. 

SECTION 1. The term " President " means the President of the 

United States of America. . SECTION 2. The term "Act " means Title I of the National Industrial Recovery Act approved by the President June 16, 1933, and 

any amendments thereto. 

SECTION 3. The term "Administrator " means the Administrator 

for Industrial Recovery. 

SECTION 4. The term "Real Estate Brokerage Industry" or 

"Industry", 1neans the representation of others, for compensation, 

fee or valuable consideration, in one or more transactions, as a 

whole or partial vocation, in any of the following activities: Selling 

or offering for sale, buying or offering to buy, exchanging or offering 

to exchange, or negotiating for the sale, purchase or exchange of 

real property; or leasing or offering to lease, renting or offering to 

rent, or negotiating for the lease or rental of real property ; and the 

collection of rent, appraising or offering to appraise the value of 

real property, the brokerage or writing of insurance, or the negoti ~ 

ating and procuring of loans on real property, as an adjunct to the 

Industry. 

SECTION 5. The term " Member of the Industry " includes all those 

engaged in the Industry either as an employer or on his or its own 

behalf. 

SECTION 6. The term "Employee" includes anyone engaged in the 

Industry in any capacity receiving compensation for his services, 

irrespective of the nature or method of payment of such compensation, except a Member of the Industry. 

SECTION 7. The term "Employer" includes anyone by whom any 

such employee is compensated or employed. 

SECTION 8. Population for the purposes of this Code shall be determined by reference to the latest Federal Census. 

(263) 
264 

ARTICLE III-HouRs 

SECTION 1. l',f awfrnum H ours.-On and after the effective date of 

this Code, no employee shall be permitted to work in excess of forty 

{40) hours in any one week, or in excess of eight (8) hours in any 

twenty-four (24) hour period, except as herein otherwise provided. 

SECTION 2. Exceptions as to H owrs.-The limitation as to hours of 

labor as specified in Section 1 of this Article III shall not apply to· 

the following : 

(a) In cases of necessity and when additional labor is not available or temporary substitution is found impracticable, any employee 

may be permitted to work in excess of the maximum daily and weekly 

hours specified in Section 1 of this Article III, provided, that one 

and one third ( 11/2) times his normal wage rate per hour shall be paid 

for each hour of overtime so worked. In no case shall any employee 

be permitted to work in excess of forty-eight ( 48) hours per week. 

All overtime hours worked and all overtime payments made during 

seasonal peak periods shall be reported by the Code Authority to 

the Administrator. 

(b) To employees in establishments in the Industry located in 

towns of less than 2,500 population, not a part of a larger trade area, 

which establishments employ not more than two (2) persons in 

addition to the executive officers; and to employees in a managerial, 

executive or supervisory capacity who receive not less than ThirtyFive Dollars ($35.00) per week. 

( c) To outside salesmen, solicitors, collectors or rental men whose 

office duties require less than sixteen ( 16) hours per week ( forty 

per cent ( 40% ) of the maximum hours as outli~<3d in Section 1 of 

this Article III). 

SECTION 3. Standard W eek.-N o employee shall be permitted to 

work more than six (6) days in any seven (7) day period. 

SECTION 4. Employnient by several Eniployers.-No employer 

shall knowingly permit any employee to work for any time which, 

when totalled with that already performed with another employer, 

or employers in this Industry or other Industries, exceeds the maximum permitted herein. 

ARTICLE IV-WAGES 

SECTION 1. 1',fininium Wages.-On and after the effective date of 

this Code, no employee, except as herein otherwise specified, shall be 

pairl less than the following weekly wage: 

In cities of 500,000 population or over, or in the immediate trade 

ar(.>a of such cities, Fifteen Dollars ($15.00) per week of forty (40) 

hours. 

In cities of 250,000 to 500,000 population, or in the immediate trade 

area of such cities, Fourteen Dollars and Fifty Cents ($14.50) per 

week of forty ( 40) hours. . 

In cities of 10,000 to 250,000 population, or in the immediate trade 

area of such cities, Fourteen Dollars ($14.00) per week of forty ( 40) 

hours. 

In towns under 10,000 poulation, Twelve Dollars ($12.00) per 

:week of forty ( 40) hours. 
265 

In no case shall any employee be paid a les er weekly rate :for the 

forty ( 40) hour week herein establishe l than such employee was 

paid as o:f the effective date of this Code. 

(a) Salesmen, solicitors, colle.ctors, or rental men, com pen ated on 

a commission basis, shall be exempt :from the provisions of Section 1 

of this Article IV. 

(b) Offic_e boy , office girls_ and messengers, under 18 years of age, 

may be paid not less than eighty per cent (80 % ) o:f the respective 

minimum wages specified in Section 1 of this Article IV, and provided further that the number o:f office boys, office girls and messengers so paid shall constitute not more than ten per cent (10% ) 

of the total number of employees of any office of any one employer, 

but in any case each employer shall be entitled to at least one such 

employee. 

SECTION 2. Part time employee shall be paid an hourly rate which 

shall be not less than the pro rata amount of the weekly wages specified in Section 1 of this Article IV. 

SECTION 3. Wages Above the Minimurn.-Equitable adjustments 

in all pay schedules o:f employees above the minimum fixed in this 

Code shall be made within thirty (30) days after the effective date 

of this Code by any employer who has not heretofore made such 

adjustments under the National Industrial Recovery Act. In no 

event, however, shall any weekly rates or hourly rates be reduced. 

Within sixty (60) days after the effective date of this Code each 

Member o:f the Industry shall make a report of such adjustment 

whether made prior to or subsequent to the date of approval of this 

Code to the Code Authority. 

SECTION 4. Fernale Ernployees.-Female employees per:forming 

substantially the same work as male employees shall receive the 

same rate o:f pay as male employees, and when they displace male 

employees they shall receive the same rate of pay as the men they 

displace. 

SECTION 5. Handicapped Persons.-A person whose earning capacity is limited because of age, physical or mental handicap, or 

other infirmity, may be employed on light work at a wage below 

the minimum established by this Code, i:f the employer obtains from 

the state authority, designated by the United States Department 

of Labor, a certificate authorizing such person's employment at such 

wages and for such hours as shall be stated in the certificate. Such 

authority shall be guided by the instructions of the United States 

Department of Labor in issuing certificates to such persons. Each 

employer shall file monthly with the Code Authority a list o:f all 

such persons employed by him, showing the wages paid to and the 

maximum hol!-rs of work for such employee. 

SECTION 7. Payment of W ages.-An employer shall make payment 

of all wages in lawful currency, or by negotiable check therefor, 

payable on demand. These wages shall be exempt from any payments other than tho e voluntarily ordered by the wage earners or 

required by State Laws. ray periods for wages shall be at least 

semimonthly and for salaries at least once per month. Employers 

shall not withhold wages except as otherwise provided by law. 
266 

ARTICLE V-GENERAL LABOR PROYISIONS 

SECTION 1. Child Labor.-No person under 16 years of age shall 

be employed in the Industry. No person under 18 years of age shall 

be employed at operations or occupations which are hazardous in 

nature or dangerous to health. The Code Authority shall submit to 

the Administrator within sixty (60) days after the effective date of 

this Code a list of such operations or occupations. In any state an 

employer shall be deemed to have complied with this provision as to 

age of employees if he shall have on file a certificate or permit, duly 

signed by the authority of such state empowered to issue employment 

or age certificates or permits, showing that the employee is of the 

reg u ired age. · 

SECTION 2. Provisions of the Act.-(a) Employees shall have the 

right to organize and bargain collectively through representatives 

of their own choosing, and shall be free from the interference, restraint, or coercion of employers of labor, or their agents, in the 

designation of such representatives or in self-organization or in other 

concerted activities for the purpose of collective bargaining, or other 

mutual aid or protection. 

(b) No employee and no one seeking employment shall be required 

as a condition of employment to join any company union or to refrain from joining, organizing, or assisting a labor organization of 

his own choosing. 

( c) Employers shall comply with the maximum hours of labor, 

minimum rates of pay, and other conditions of employment approved 

or prescribed by the President. 

SECTION 3. Reclassification of E1nployees.-N o employer shall 

reclassify employees or duties of occupations performed, or engage 

in any other subterfuge for the purpose of defeating the purposes or 

provisions of the Act or of this Code. 

SECTION 4. Standards for Safety and H ealth.-Every employer 

shall make reasonable provisions for the safety and health of his 

employees at the place and during the hours of their e1nployment. 

Standards for safety and health shall be submitted by the Code 

Authoritv to the Administrator within six months after the effective 

date of this Code. 

SECTION 5. State Laws.-N o provision in this Code shall supersede any state or federal law which imposes on employers more 

stringent requirements as to age of employees, wages, hours of work, 

or as to safety, health, sanitary, or general working conditions, or 

insurance, or fire protection, than are imposed by this Code. 

SECTION 6. Posting.-All employers shall post and keep posted 

complete copies of this Code and all amendments thereto in conspicuous places accessible to employees. 

SECTION 7. Dismissal.-No employee shall be dismissed by reason 

of making a complaint or giving evidence with respect to a violation 

of this Code. 

ARTICLE VI-ORGANIZATION, CoNSTITOTION, PowERs .AND DUTIES OF 

THE CODE AUTHORITY 

SECTION 1. A Code Authority to administer this Code is hereby 

constituted and shall consist of eleven ( 11) voting members selected 

fro111 members of the Industry truly representative of its yarious 
267 

interests. Eight (8) of such voting members shall be elected by the 

National Association of Real Estate Boards and three (3) of sucq 

voting men1bers shall be members of the Industry ( not members of 

the National Association of Real Estate Boards). The selection o:f 

all members of the Code Authority shall be by a fair and equitable 

method of election to be approved by the Administrator. 

SECTION 2. In addition to the above membership of the Code 

Authority there may be one and not more than three members, 

without vote, and without compensation by the Industry to be 

appointed by the Administrator to serve for such terms as he may 

specify. 

SECTION 3. Each trade association directly or indirectly participat~ 

ing in the selection or activities of the Code Authority shall: 

(a) Impose no inequitable restrictions on membership, and 

(b) Submit to the Administrator true copies of its Articles of I 

Association, By-Laws, Rules and Regulations and any amendments 

when ma'ie thereto, together with such other information as to membership, organization, and activities as the Admini trator may deem 

neces ary to effectuate the purposes o:f the Act. 

SECTION 4. In order that the Code Authority shall at all times be 

truly representative o:f the Industry and in other respects comply 

with the provisions o:f the Act, the Administrator may prescribe 

such hearings as he may deem proper; and thereafter, if he shall find 

that the Code Authority is not truly representative or does not in 

other respects comply with the provisions of the Act, may require 

an appropriate modification in the method o:f selection of the Code 

Authority. 

SECTION 5. Members of the Industry shall be entitled to participat~ 

in and share the benefits of the activities o:f the Code Authority anc:J 

to participate in the selection o:f the members thereof by assenting · 

to and complying with the requirements o:f this Code and sustaining 

their reasonable share of the expenses of its administration. Such 

reasonable share o:f expenses o:f administration shall be determined 

by the Code Authority, subject to review and approval by the Administrator, on the basis of volume of business and/or such other 

factors as may be deemed equitable. 

SECTION 6. Nothing contained in this Code shall constitute the 

members of the Code Authority partners for any purpose. Kor 

shall any member o:f the Code Authority be liable in any manner to 

anyone :for any act o:f any other member, officer, agent or employee 

of the Code Authority. Nor shall any member o:f the Code Authority, exercising reasonable diligence in the conduct of his duties 

hereund-e r be liable to anyone :for any act or omission to act under this 

Code, except for his own wilful misfeasanC€ or non:feasance. 

SECTION 7. Powers and Duties.-Subject to such rules and regulations as may be is ued by the Administrator, the Code Authority 

shall have the :following further powers and duties, the exerci e 

of which shall be reported to the Administrator and shall be ubject 

to his right, on review, to disapprove, after such hearing as he may 

prescribe, any action taken by the Code Authority. If the Administrator shall determine at any time that any action of the Code 

Authority or any agency thereof is unfair or unjust or contrary to 

the public intere t, the Administrator may require that such action 

be suspended to afford an opportunity for investigation of the 
268 

merits of such action and further consideration by such Code Authority, or agency, pending final action, which shall not be effective 

unless the Administrator approves, or unless he shall fail to disapprove after thirty (30) days' notice to him of intention to proceed 

with such action in its original or modified form. 

(a) To make investigations as to the functioning and observance 

of any provisions of this Code at its own instance, or upon complaint of any person affected, and shall report the result thereof 

to the Administrator. 

(b) To insure the execution of the provisions of th.is Code and 

provide for the compliance of the Industry with the provisions of 

the Act, subject to such rules and regulations as the Administrator 

may prescribe. 

(c) To adopt By-Laws and Rules and Regulations for its procedure and for the administration and enforcement of the Code. 

The Code Authority shall promptly furnish to the Administrator 

true copies of the By-Laws, Rules and Regulations adopted pursuant to this paragraph. 

( d) To obtain from Members of the Industry through a confidential agency such statistical information and reports as are required for the administration of the Code and to provide for 

submission by Members of the Industry of such statistical information and reports as the Administrator may deem necessary for the 

purposes recited in Section 3 (a) of the Act, which information and 

reports shall be submitted by Members of the Industry to such 

Federal or State agencies as the Administrator may designate; 

provided, that nothing in this Code shall relieve any Member of 

the Industry of any existing obligations to furnish reports to any 

government agency. No individual reports shall be disclosed to 

any other Member of the Industry or any other party except to such 

governmental agencies as may be directed by the Administrator. 

( e) To use such trade associations and other agencies as it deems 

proper for the carrying out of any of its activities _provided for 

herein, provided that nothing herein shall relieve the Code Authority of its duties or responsibilities under this Code and that such 

trade associations and agencies shall at all times be subject to and 

comply with the provisions hereof. 

(f) To make recommendations to the Administrator for the coordination of the administration of this Code with such other Codes, 

if any, as may be related to the Industry. 

(g) To cooperate with the Administrator in regulating the use of 

any N.R.A. insignia solely by those Members of the Industry who 

have assented to and are complying with, this Code. 

(h) To conduct investigations and call hearings to consider further fair trade provisions submitted by Members of the Industry 

through voluntary agreement for any region or locality and to 

recommend to the Administrator the adoption of such measures to 

govern members of the Industry in any region or locality in their 

relations with each other or with other Industries, and to recommend 

to the Administrator measures for industrial planning, including 

stabilization of employment, and for the general welfare of the 

Industry in any such region, and to make recommendations as to 

the modifications of the Code to be submitted to the Administrator 
269 

by the Code Authority. After such notice and hearing as the Administrator may prescribe, such measures shall become effective as a 

part of this Code upon approval by the Administrator. 

(i) To define local, state or regional code control areas and designate th~ boundaries thereof subject to th approval of the 

Administ:rator 

(j) To appoint committees to be selected from and by the local 

real estate boards to serve as local code control boards, and where 

no such local real estate boards exist, to appoint local, state or 

regional code control boards, or to appoint committees selected from 

and by state associations affiliated with the National Association 

of Real Estate Boards as such code control boards. All such local 

state or regional boards shall be truly representative of the Industry 

of the code control areas within boundaries to be defined as provided for in subsection ( i) above. The selection of members and 

committees as local, state, or regional control boards shall be by a 

fair and equitable method of election to be approved. by the Admi~istrator. Such code control boards shall have the right to prescribe 

fair trade provisions for their respective local, state, or regional 

code control areas under the direction of the Code Authority, and 

with the approval of the Administrator, provided, such fair trade 

provisions shall in no event be less stringent than those set out in this 

Code in Article VII. 

(k) To provide a method of registration of all members of the 

Industry to be approved by the Administrator. All members of the 

Industry shall be registered with the Code Authority and shall pay 

their reasonable share of the expense of administerini this Code as 

assessed by the Code Authority after the approval ot the Administrator has been given to such method of assessment. 

ARTICLE VII-TRADE PRACTICE RULES 

SECTION 1. The following trade practices are declared to constitute 

methods of unfair competition between members of the Industry, and 

no member of the Industry shall use or engage in any of them, directly or indirectly, through any officer, agent or employee. Engaging in any one of such trade practices or of any other practices 

which hereafter may be declared to be unfair methods of competition 

by the Code Authority,- approved by the Administrator, shall be 

deemed a violation of this Code. 

RULE 1. No Member of the Industry shall pay commissions or fees 

to, or divide commissions or fees with anyone except with Members 

of the Industry registered with the Code Authority as specified in 

subsection (k) of Article VI. 

RULE 2. No Member of the Industry shall fail to comply with 

the requirements of the states having Real Estate License Laws. 

RULE 3. No Member of the Industry shall use any trade name or 

insignia of membership in any organization of thi Industry of 

which he is not a member. 

RULE 4. No Member of the Industry shall accept, give, or charge 

any undisclosed commission, rebate, or direct profit on expenditures 

made for a principal. 

RuLE 5. No member of the Industry shall solicit, sell or offer for 

sale real property by offering " free lots " or conducting lotteries for 
270 

the purpose of influencing a purchaser or prospective purchaser o:f 

real property. 

RuLE 6. No member of the Industry shall act in the dual capacity 

of broker and undisclosed principal 1n any transaction. 

RuLE 7. No member of the Industry shall guarantee, .authorize 

or permit any person to guarant:€e future profits which may result 

from the resale of real property. 

RULE 8. No member of the Industry shall place a sign on any 

property offering it for sale or for rent without the written consent 

of the owner or his authorized agent. 

RULE 9. No member of the Industry shall induce any party to a 

contract of sale or lease or to break such contract for the purpose 

of i::ubstituting in lieu thereof a new contract with another principal. 

RuLE 10. No member of the Industry shall negotiate the sale, exchange or lease of any real property directly with an owner or 

lessor if he knows that such owner or lessor has a written outstanding contract granting exclusive agency in connection with such 

property with another member of the Industry. 

RuLE 11. No member of the Industry shall offer real property 

for sale or for lease without the knowledge and consent of the owner 

or his authorized agent, or on any terms other than those authorized 

by the owner or his authorized agent. 

RULE 12. No member of the Industry shall intentionally publish 

advertising (whether printed, radio, display, or of any other nature) 

which is misleading or inaccurate in any material particular, or in 

any way misrepresent any properties, terms, values, policies, or 

services of the business conducted. 

RuLE 13. No member of the Industry shall knowingly withhold 

from or insert in any statement of account or invoice any statement 

.that makes it inaccurate in any material particular. 

RULE 14. No member of the Industry shall give, or permit to be 

given, or directly offer to give anything of value for the purpose 

of influencing or rewarding the action of any employee, agent or 

representative of another in relation to the business of the employer 

of such employee, the principal of such agent or the represented 

party, without the knowledge of such employer, principal or party. 

This commercial bribery provision shall not be construed to prohibit 

free and general distribution of articles commonly used for advertising except so far as such articles are actually used for commercial 

bribery as hereinabove defined. 

RULE 15. No member of the Industry shall publish or circulate 

unjustified or unwarranted threats of legal proceedings which tend 

to or have the effect of harassing competitors or intimidating their 

customers. 

RULE 16. No member of the Industry shall accept employment or 

compensation for appraising real property contingent upon the 

reporting of a predetermined or specified valuation. 

RULE 17. No member of the Industry shall .issue an appraisal 

report on real property, in which the member of Industry has any 

interest, unless such interest is disclosed in the report. 

RULE 18. No member of the Industry shall issue an appraisal 

report on value of land only or improvements only, without endors-
271 

ing thereon a statement to the effect that such valuation shall not be 

added to any other valuation of improvements only or land only, 

as the case m.ay be, in determining the value of both together unless 

there shall be also a separate appraisal of the whole property in 

which the , aluation of land and improvements are reconciled. 

ARTICLE VIII-MODIFICATION 

SECTION 1. This Code and all the provisions thereof are expressly 

made subject to the right of the President, in accordance with the 

provisions of sub ection (b) of Section 10 of the Act, :from time to 

time to cancel or modify any order, approval, license, rule, or regulation issued under said Act. 

SECTION 2. Su h of the proYi ·ions of this Code as are not required 

to be included therein by the Act may, with the approval of the 

Admini trator be am-ended as provided in Section 3 hereof, in such 

manner a may be in die a ted by the needs of the public, by changes 

in circum. tances, or by experience; all the provisions of this Code, 

unless o modifie l or eliminated, shall remain in effect until the 

expiration date of Title I of the Act. 

SECTION 3. An amendment may be proposed by any interested 

party either to the Code Authority or directly by or to the Administrator. All proposed amendments shall be referred to the Code 

Authority, who hall giYe members of the Industry an opportunity 

to be heard thereon, and thereafter the Code Authority may make 

such recommendations thereon as is deemed proper, provided, however, that when approYed by the Administrator as necessary to effectuate the policies· of the Act, after such notice and hearing as he 

may prescribe, any proposed amendment shall thereupon become 

effective a a part of thi Code. . SECTION 4. The Code Authority may make recommendations for 

modifications of this Code to the Administrator which shall become 

effective a a part of this Code upon approval by the Administrator 

after such notice and hearing a he may prescribe. 

ARTICLE IX- if ONOPOLIES 

No proYi ion of this Code shall be so applied a to promote monopolies or monopoli tic practices, or to eliminate, oppress, or discriminate against small enterprise . 

ARTICLE X-STA'IE LICENSE LA ws 

Pi·ovisions of this Code shall not supersede or modify the standards, requirements, or regulations established by the Real Estate 

Licensing Laws of any state for the Real Estate Brokerage Industry, 

where such standard , requirements, or regulations are more stringent than the proYisions of this Code. 

ARTICLE XI-EFFECTIVE DATE 

This Code shall become effective beginning ten days after its 

approval by the Administrator . 

.Approved Code No. 392. 

Registry No. 1743-16. 

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UNIVERSITY OF FLORIDA 

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