REIQ Best Practice Guidelines v03.23 - Flipbook - Page 72
(b) In addition to guideline 4 of Chapter 1 of these
Guidelines, Member Business Brokers must not
engage in misleading or deceptive conduct in
advertising a business for sale including
making statements about a business that may
induce a buyer to purchase the business in
reliance on the statement, such as statements
about:
i.
the income, profit or return of the
business;
ii.
the type of business and scope of
services provided by the business; and
iii.
the future prosperity or potential of
the business.
(c) An advertisement for the sale of a business
must contain:
i.
a sufficient description of the business;
ii.
the general location of the business;
and
iii.
the sale price in accordance with
guideline 6 of this Chapter 6.
9. BUYER QUALIFICATION
(a) Member Business Brokers may seek
information about a prospective buyer’s
qualification and experience for their client to
consider with an offer to purchase the business
and enter into the contract for sale of the
business.
(b) Member Business Brokers may verify a
prospective buyer’s qualification by obtaining
a resume from the prospective buyer,
contacting independent references and
conducting online searches of the prospective
buyer.
(c) Subject to the terms of appointment, Member
Business Brokers may in their discretion, acting
reasonably, decide not to present an
expression of interest to a Client from a
prospective buyer if they are not satisfied with
the information they have obtained.
REIQ BEST PRACTICE GUIDELINES
V08.23
(d) Member Business Brokers should provide all
written offers received from prospective buyers
to the Client.
10. BUYER REGISTRATION
AND CONFIDENTIALITY
Member Business Brokers should provide a Buyer
Agreement to genuine prospective buyers prior to
disclosing any information about the sale of the
business to that prospective buyer.
Buyer Registration Agreement
Available in Realworks
11. BUYER DUE DILIGENCE AND
DISCLOSURE OBLIGATIONS
(a) Member Business Brokers may disclose
information about the business that is desirous
to the Client to disclose, in order for the
prospective buyer to make an offer for the
business.
(b) If a Client instructs a Member Business Broker
not to disclose a matter under this guideline
11, the Member Business Broker should
provide a written statement to the Client
confirming:
i.
that the Member Business Broker has
directed the Client to obtain
legal advice about the matter,
the Client’s disclosure obligations and
the potential ramifications under the
contract; and
ii.
that in any event, the Client has
instructed the Member Business
Broker not to disclose the matter.
Read about the
REIQ Business Sale Contract
4th edition update
72
