CAROLINAS REAL ESTATE INVESTORS ASSOCIATION
STANDARDS OF CONDUCT

ARTICLE I – LANDLORDING

Investors shall comply with all points of the NC landlord/tenant law.

ARTICLE II - REAL PROPERTY EXCHANGE

A. Acquisition
Investors shall not structure real estate transactions in which other parties are put at risk
for unnecessary harm.

B. Disclosure
1. Investors shall make full disclosure to all parties to a real estate transaction
regarding the existence and nature of all liens, deeds of trust, and notes.
2. Investors shall not make any misleading, untrue, unfair or deceptive representations
to a seller, tenant or buyer.
3. Investors shall make all required disclosures relating to the sale of a property where
applicable (including lead based paint and residential property disclosures).
Investors shall not knowingly give false or misleading representation nor willfully omit
any material fact.
C. Deposits, Payments, Fees Or Other
1. Investors shall not collect any nonrefundable deposits, payments, fees or similar
consideration which exceed ten percent (10%) of the contract sale price of the real
property, on any agreement, however denominated or structured to lease or
purchase a residential property if the property is subject to an outstanding deed of
trust or mortgage obligated by a third party.
2. If an investor cannot perform as obligated in a contract, the investor shall refund all
deposits, fees and similar consideration.
D. Foreclosure Transactions
1. Investors shall recognize and comply with all anti-trust laws. No investor shall make
or accept consideration in order to limit or alter bidding participation or a bidding
outcome.
2. No investor shall collude with any other party in order to alter the outcome of a bid.
E. Financing
1. Financing as the Investor Lending to Another
a. All investors shall observe and comply with all laws and statutes pursuant to truth
in lending laws. 
b. All investors shall fully disclose to buyers all of the terms of any contract in detail,
shall sign all disclosure documents and shall obtain signatures of all parties on
these disclosures.
c. Investors shall always recommend that buyers consult with a legal advisor before
signing any tax related and/or legally binding documents.
d. All investors shall comply with applicable state and federal usury laws.
2. Financing as the Investor as Borrower
a. Investors shall not exchange any funds or other consideration that are not
reflected on the HUD-1 closing statement.
b. Investors shall not verbally or in any other fashion, provide false loan information
in order to obtain a loan.
F. Closing Statements
Investors shall not knowingly encourage, facilitate or conceal the provision of false loan
information or the exchange of funds or other consideration that are not reflected on the
HUD-1 closing statement by any party.

G. Recording Documents
All loan related documents are to be recorded with the appropriate registrar as a notice,
memorandum, or deed of trust on all transactions.

ARTICLE III – BUYING AND SELLING NOTES

A. All investors shall fully disclose what their interest is in any note which they offer for
sale.
B. No investors shall offer for sale a note on real or personal property for which the
investor has not equitable or contractual interest secured in such note.

ARTICLE IV – REAL ESTATE INVESTORS ASSOCIATION SANCTIONED TEACHING,
EDUCATION AND TRAINING

A. All speakers, instructors and trainers shall be provided with a copy of these Standards
of Conduct prior to signing a contract or conducting a presentation to Association
members and guests, whichever is earlier.
B. Speakers will provide an outline/summary of instructional content prior to the delivery or
presentation of the material.
C. All library material will carry a standard disclaimer stating the content has not been
reviewed for compliance with these Standards of Conduct or North Carolina law.
D. All speakers will present concepts and provide materials which fully conform to these
standards. 

ARTICLE V – GENERAL CONDUCT

A. All Association members shall be aware of and respect cultural differences and shall not
participate in discriminatory practices of any kind.
B. Association members shall not engage in or encourage suggestive or sexually
inappropriate behavior during Association meetings or other sanctioned events or
functions.
C. Association members shall show respect for others and shall not use inappropriate
language during Association meetings and other Association sanctioned events and
functions.
D. Association members shall conduct themselves in a professional manner and shall not
engage in conduct unbecoming a member of a professional association.
E. Members shall be prudent in their disclosure of information regarding other persons or
entities. Information of a personal nature, in particular, shall be treated judiciously and
disclosed only when essential to the conduct of their business.
F. Members will not intentionally lie, cheat or otherwise take unfair advantage of others in
the conduct of their real estate transactions.
G. Members shall provide advice and/or information only to the extent that they are
competent to do so.
ARTICLE VI – ADVERTISING

Investors shall present for sale at monthly association meetings only those properties in
which they have a legal interest.

ARTICLE VII – OTHER TRANSACTIONS

All option or assignment transactions shall be in compliance with IRS regulations.

ARTICLE VIII – MEMBERSHIP ELIGIBILITY

A. New members will attend a membership training class of no more than 2 hours that will
be made available quarterly. New members must attend this class within 180 days of
joining. This interim period will allow the member a provisional membership until this
class has been completed. If the member does not attend the membership training
class during this 180 day period, the membership will be suspended until class
completion.
B. In order to implement these Standards of Conduct, they will be introduced during a main
meeting. Participation in this meeting will satisfy the training requirement for existing
members. Those current members who do not attend this meeting shall acknowledge
receipt, understanding, and acceptance of this standards document.
CREIA Standards of Conduct Page 3 of 4 Rev “A“
June 2, 2008

ARTICLE IX – GRIEVANCE/COMPLAINT PROCEDURE

A. The grievance procedure, including a grievance/complaint form, will be published in the
new member handbook and will be made available on the Association website. All
member grievances must be submitted to the grievance committee in writing.
B. The Association will establish and provide public notice of a telephone number
accessible for public complaints. Persons making grievances/complaints regarding
non-Association members will be referred directly to the North Carolina Attorney
General’s office.

ARTICLE X – STANDARDS OF CONDUCT HEARING PANEL

A. Requirements
1. The Standards of Conduct Hearing Panel shall be composed of 5 members. One
committee member shall be a Board Member and another shall be the Membership
Chairperson. The remaining three members will be members of the Association in
good standing for a minimum of one year.
2. Committee members shall voluntarily agree to be available should a complaint be
filed to review, and if necessary, attend a complaint hearing. Review meetings may
be teleconferenced.
3. Any member of the hearing panel who does not attend two hearings in a single year
period will be deemed as resigned. The Board will appoint a replacement.
B. Disciplinary Measures
1. Upon establishing, through due process, that there is a factual basis to a complaint,
the Standards of Conduct Hearing Panel may take the following actions.
a. Reprimand/warn members
b. Limit membership privileges
c. Require members to attend a Standards of Conduct class or other educational
program
d. Recommend suspension of membership privileges
e. Recommend termination of membership (to be enacted by Board decision only)
f. Defer to Board
2. The Standards of Conduct Hearing Panel will reserve the right to refer a complaint to
the Board in particular situations. If there is a question concerning a possible law
violation, the Board will hear the complaint and take necessary action including
referral to the appropriate local or state legal authority.
This Standards of Conduct document was approved at the Carolinas Real Estate Investors
Association board meeting held on June 2nd, 2008.