Evening star., 1936-01-11
REALTY MANAGERS.
SET UP STANDARDS.
National Association Unit
Approves Mandatory
Code on Practices.

Following continuous study since its
formation. two years ago, the instltuCe
of Real Estate Management OF tne
National Association of Real estate
Boards has adopted standards of prac-
tice, mandatory on its MEMBER irlis,
and has adopted formal statement
of further, recommended policies.
The standards are of interest to all
owners of income property. They are,
in full as follows:
/. Clients funds shall be segregated
from monies belonging to the man
agement firm and shall be kept in a
separate bank or bank account under
some such special designation as own
ers' trust fund.-" so that it is apparent
that the monies in this fund do not
belong to the agent.
2. The segregated account or ac-
counts of clients shall at all times con-
tain 100 per cent of all funds belong
ing to the client or clients.
Bonding of Fund Handlers.
8. Clients funds shall not be ham
died or accounted for by an officer or
employe who is not bonded.
4. Unless the client instructs other
wise, in writing, the agent shall within
the first 10 days of each month send
him a check covering in full the bal
ance in his account on the last day
of the preceding month, together with
q complete, itemized statement of re-
ceipts and disbursements.
S. The managing agent shall have a
specific understanding with each client
as to fees and commissions for man.
aging, renting and other services, and
these charges shall be shown clearly
on the clients monthly statement as
items paid to the agent.
6. The agent shall accept no COM
missions, rebates, discounts or other
benefits from the management of a
clients property other than those spe-
cifically agreed upon.
7. When the agent deducts cash dis
counts from bills or purchases his
statement to the owner concerned
shall show only the disbursement OF
the net amount actually paid.
s. The agent shall not use advertiS-
ing which is inaccurate in any mate
rial particular or which misrepresents
the agents services, the clients prop
erty or is otherwise misleading.
l. Before making any lease, written
or verbal, a detailed application from
the prospective tenant should be re-
quired and written references secured
2. A management agent should pur-
chase materials and supplies, contract
for labor and material and assume
other obligations on behalf of a client
in the clients name and not in his
own name
8. All bills for disbursements oi
owners funds should be approved by
an officer or principal of the manage
ment agency.
Insurance to Protect Manager.
4. Whether the relationship of the
manager to the client is that of man.
ager or contractor, the manager
should be protected by workmen's
compensation, public liability and /or
other insurance at the cost of the
client.
S. If client requires fidelity bond
the cost thereof should be borne by
the client.
6. Unless otherwise agreed, the cli-
ent should pay for all of the adver-
tising of his property.
7. Services rendered by management
agencies in connection with tax OBJ
jections and reductions should be COM
pensated for in addition to the regu-
lar management fee.
8. The manager should distinguish
between business and legal advice and
should not assume the responsibility
of attempting to give the client legal
advice.
9. No member should advertise
premises for rent with concessions or
free rent.
10. No management agent should
induce or attempt to induce the
breach of an existing oral or written
contract between a competitor and
his client.