LPA Policy

Professional Code of Ethics and Conduct Standards of the Leading Property Agents of Spain (LPA)

Introduction

The affiliation rules and professional code of ethics form the cornerstone of the Leading Property Agents of Spain (LPA).

Imagine the LPA as a sturdy bridge connecting agencies, clients, and collaborators. The planks of this bridge are the ethical and conduct standards, ensuring that every agency upholds honesty, professionalism, and mutual respect. Without these planks, the bridge would be unstable, and trust would falter.

Agencies commit to following these standards, ensuring their directors, employees, agents, and collaborators not only know but live by them in every business activity.

Even if the Code requires more than the law, think of it as a lighthouse guiding everyone safely through complex waters—always adhering to legal obligations first when conflicts arise.

General Obligations

Real estate agents hold the responsibility of promoting fair use and distribution of properties, like gardeners ensuring every plant receives adequate sunlight and resources. They also aim to foster sustainable development and environmental conservation, continuously improving their professional practices.

Integrity acts as their compass, guiding them toward social welfare while cooperation and honesty with colleagues and all parties involved create a cohesive and ethical profession.

Articles

Article 1: Membership Requirements

  • Proposal and Endorsement: New members must be proposed and endorsed by at least three current members of the association.
  • Professional Experience: The agency or its owner/director must demonstrate at least 3 years of proven professional experience in the real estate sector during the last 3 years. This requirement can be fulfilled through the agency's establishment or the professional experience of its leadership.
  • Physical Office: Members must operate a functional physical office.
  • Financial Solvency: Members must demonstrate financial stability and solvency.
  • Legal Background: No LPA member may have a criminal record.
  • Competitive Neutrality: Membership applications cannot be rejected solely due to competitive concerns.
  • Brand Usage: Members are required to use the LPA logo on corporate and promotional materials, such as websites, social media, stationery, and other mediums, to enhance visibility and strengthen the association's brand.
  • Ethical Compliance: Members must commit to adhering to LPA's rules and code of ethics in all professional activities.
  • Team Responsibility: Members must ensure their staff and collaborators are informed about and understand LPA's rules and code of ethics, being accountable for ensuring professional behavior consistent with the association’s standards.

Article 2: Non-Discrimination

  • Equal Access to Services: Real estate agents must not deny services or discriminate against any person based on race, religion, gender, disability, sexual orientation, marital status, or other conditions protected by current legislation.
  • Rejection of Discriminatory Practices: Members commit to refraining from activities, transactions, or practices that promote segregation or cause social alarm and must not encourage sales or rentals based on discriminatory criteria.
  • Objective Information: All demographic information provided must be based on verifiable sources and communicated accurately, impartially, and respectfully, avoiding any form of bias or prejudice.

Article 3: Professional Competence

  • Acceptance of Tasks: Real estate agents must accept only those tasks for which they possess the necessary training, experience, and skills. If required, they must collaborate with experts to ensure quality service.
  • Evidence-Based Valuations: Property valuations must rely on objective data, reliable analysis, and comprehensive knowledge of the real estate market.
  • Transparency with Clients: If an agent lacks expertise or knowledge in a specific property type or service, they must clearly inform the client and seek appropriate professional assistance.
  • Regulatory Awareness: Agents are responsible for staying updated on legal regulations and rules affecting their activities and client interactions, ensuring compliance with current legislation.

Article 4: Truthful Representation in Communications and Advertising

  • Accuracy in Information: All advertising, communication, or public representation must be truthful and accurately reflect the services and properties offered.
  • Consent for Publication: It is strictly prohibited to advertise properties without the explicit consent of the owner or the exclusive agent, as this harms both the owner and the professional reputation of the sector.
  • Digital Platform Updates: On digital platforms, agents must ensure that published information is clear, up-to-date, and faithfully represents the actual characteristics of the properties or services offered.
  • Responsible Content Use: Agents must present a truthful image in their advertisements and public representations, including content, images, links, and domain names. They are prohibited from: contributing to fraudulent real estate websites or reproducing website designs without authorization; altering information about properties or services in a way that produces misleading results; misusing metatags, keywords, or other methods to redirect online traffic; displaying third-party-created content without proper credit or authorization; or misleading clients by using images or elements that do not reflect reality.

Article 5: Protection and Promotion of Client Interests

  • Client Priority: Real estate agents must act with the utmost commitment to the interests of the client who hires them while maintaining honesty and respect toward all parties involved in the transaction.
  • Offer Presentation: Offers and counteroffers must be presented objectively, transparently, and promptly, ensuring effective communication.
  • Honesty in Valuations: Agents must not provide misleading information about a property’s value to secure a contract or personal benefit.
  • Independent Advice: Agents must encourage their clients to seek independent professional advice on tax, urban planning, or legal matters, either privately or with experts recommended by the association, if requested.
  • Client Data Confidentiality: All personal information and data obtained during professional practice must be treated with the utmost confidentiality, in accordance with the law. This obligation persists even after the termination of the contractual relationship.
  • Restrictions on Data Use: Under no circumstances may LPA members use client information or data for improper purposes, such as gossip, personal gain, or harm.
  • Confidentiality Exceptions: Disclosure of client information or data is permitted only with explicit consent, by judicial mandate, upon request by authorities during a criminal investigation, when there are reasonable grounds to believe the information pertains to criminal activities, or to defend against allegations of misconduct.
  • Professional Boundaries: Real estate agents must not assume the roles of lawyers or provide legal services. When legal advice is necessary, agents must recommend that clients seek qualified professionals to safeguard their interests.

Article 6: Accuracy and Transparency of Information

  • Precision of Information: Real estate agents must ensure that all information provided about properties, transactions, or services is accurate, clear, and based on verifiable facts.
  • Avoiding Exaggerations: It is prohibited to exaggerate or distort features, benefits, or conditions related to properties or transactions to prevent false expectations or confusion among clients.
  • Relevance and Transparency: The information provided must be relevant and should not omit important details that could influence the decisions of the parties involved.

Article 7: Cooperation with Other Agents

  • Mandatory Collaboration: Real estate agents must collaborate with other agents when it benefits the client, unless specific agreements indicate otherwise.
  • Compensation Terms: Before presenting offers or working in collaboration with other agents, compensation terms must be clearly communicated and accepted by all involved parties.

Article 8: Personal Economic Interests in Real Estate

  • Declaration of Interests: Real estate agents must declare in writing any personal or financial interests they have in the properties involved before formalizing agreements.
  • Prior Transparency: These declarations must be made clearly and before signing any contract.

Article 9: Commissions and Economic Benefits

  • Client Consent: Real estate agents must not accept additional commissions, fees, or benefits without the explicit knowledge and consent of the client.
  • Disclosure of Interests: If agents recommend services in which they have economic interests, they must clearly and transparently inform the client, ensuring full awareness.

Article 10: Compensation from Multiple Parties

  • Mutual Consent: If receiving compensation from multiple parties in a transaction, agents must obtain the informed consent of all parties involved.

Article 11: Fund Management

  • Responsible Management: Agents must act with the utmost responsibility in managing third-party funds, ensuring proper use and protection.
  • Transparency: It is the agents' obligation to ensure the transparent handling of these funds in compliance with current legal regulations, providing clarity to all parties involved in the transactions.

Article 12: Written Documentation

  • Clarity in Agreements: All agreements and contracts must be clearly, comprehensively, and understandably drafted, ensuring that all parties involved fully understand the terms and conditions.

Article 13: Conflict of Interest

  • Transparency in Appraisals and Valuations:
    • If an agent is commissioned to appraise or value a property, they must disclose to the client any conflicts of interest, such as having previously been engaged to sell or rent the property or conducting any commercial activity related to it.
    • In case of a conflict, the agent must refrain from conducting the valuation or appraisal to ensure impartiality.
  • Disclosure of Personal Interests:
    • Agents must openly and transparently disclose if they or a family member are involved in the purchase or sale of a property managed by the agent or another LPA agency.
    • This notification must be made in writing to the seller or buyer and/or their attorney before or simultaneously with the submission of the purchase or sale offer.

Article 14: Disciplinary Procedures

  • Cooperation with Investigations: Agents must fully cooperate with investigations conducted by regulatory bodies and respect issued decisions.
  • Confidentiality: Information about disciplinary processes may not be disclosed without proper authorization from the relevant entities.
  • Non-Interference: Agents must not interfere with the management of property sales or rentals being handled by another member.
  • Respect for Prior Work: If an agency has shown a property to a client, it is strictly prohibited to interfere in the agency's work for a period of six months. Clients must be informed that if they wish to make an offer on the property, they are obligated to do so through the agency that originally showed them the property.

Article 15: False or Misleading Statements About Other Agents

  • Avoiding Malicious Comments: Agents must refrain from making false, misleading, or malicious statements about other professionals in the sector.
  • Correction of Inaccurate Information: If incorrect information is published in media controlled by agents, they are obligated to correct it as soon as possible.
  • Respect for Established Prices: Agents are prohibited from offering properties at prices other than those agreed upon with the owners or the agency with exclusive rights to the sale or rental.

Article 16: Respect for Exclusive Agreements

  • Non-Interference: Agents must not interfere with exclusive representation agreements signed between other agents and their clients.
  • Ethical Communication: Communication with clients of other agents must be conducted ethically, professionally, and in respect of existing exclusive agreements.

Article 17: Use of Marketing Materials

  • Prior Authorization: Agents must not use exclusive marketing materials from other agencies without obtaining prior authorization, including photographs, videos, and other promotional materials.

Article 18: Resolution of Conflicts Between Members

  • Mediation and Arbitration: Conflicts between members must be resolved through mediation or arbitration processes, avoiding unnecessary legal disputes whenever possible.
  • Compensations: Disagreements related to compensation will be submitted to the arbitration mechanisms established by the Ethics and Complaints Committee.

Article 19: Ethics and Complaints Committee

  • Committee Election: The Ethics and Complaints Committee will be elected annually by the LPA Board of Directors.
  • Complaint Management: Upon receiving a complaint or dispute between members, the committee will act as an arbitrator, and its decision will be final.
  • Public Complaints: All public complaints will be investigated by the committee. If it is determined that a member has violated LPA rules, disciplinary measures will be taken, including:
    • Reprimands.
    • Suspension of membership.
    • Expulsion from the association.
  • Confidentiality and Diplomacy: In all mediation processes and internal investigations, the committee will act with the utmost discretion and diplomacy.
  • Public Decisions: Any matter requiring public disclosure will be jointly decided by the Ethics and Executive Committees.