Rules of the Finnish Real Estate Agents’ Association

Approved at the Association’s meeting on the 12th of November 2021 (registered on the 18th of November 2021)

1 § Name and registered office

The name of the association is Suomen Kiinteistönvälittäjät ry – Finlands Fastighetsmäklare rf and its registered office is in Helsinki. The established informal acronym for the name of the association is SKVL. The official language of the association is Finnish. In these rules, the association is referred to as ”Association”.

2 § Purpose

The purpose of the Association is to supervise and promote the common interest of its members, to promote and develop the general conditions of the real estate agency and letting agency sector and to increase co-operation between persons and companies operating in the real estate agency and letting agency sector.

It also aims to promote the professional skills of its members and their individual employees and to encourage them to work responsibly, with high quality and in accordance with good agency practice in all their activities, thus enhancing the overall image of the sector.

3 § Forms of action

To achieve its objectives, the Association:

1) carries out information, publication, advisory, training and research activities,

2) does lobbying by participating in the preparation of legislation on real estate brokerage and letting activities, making initiatives and proposals in this area, issuing opinions and liaising with the authorities and other decision-makers. The Association has the opportunity to belong to national and international associations, organisations and other co-operation bodies and thus influence developments in the sector at national and international level,

3) promotes co-operation between its members,

4) supervises compliance by its members with good agency practice and fair rental practice and with the code of ethics drawn up by the Association,

5) makes available to its members forms in accordance with the legislation,

6) promotes the professional, responsible and quality-oriented activities of its members,

7) participates in the development of training programmes with the authorities and other players in the industry.

4 § Ordinary members

Ordinary members of the Association may include:

1) A sole trader or legal person registered with the supervisory authority and who undertakes to comply with good agency practice and with the moral rules and other guidelines laid down by the Board of Directors or the General Assembly of the Association. Hereinafter referred to as “estate agent”.

2) A sole trader or legal person registered with the supervisory authority as a letting agency broker, who undertakes to comply with fair rental practice and with the moral rules and other guidelines laid down by the Board of Directors or the General Assembly of the Association. Hereinafter referred to as “letting agent”.

3) A sole trader or legal person registered with the supervisory authority as a real estate agent, operating under the same marketing name together with one or more other traders or legal persons, who undertakes to comply with good agency practice and with the moral rules and other guidelines laid down by the Board of Directors or the General Assembly of the Association. Hereinafter referred to as ”chain estate agent”. A trader or legal person may be admitted as a chain estate agent member and may be a chain estate agent member if all traders or legal persons who are engaged in real estate brokerage under the same marketing name are chain estate agent members or chain letting agent members of the Association.

4) A sole trader or legal person registered with the supervisory authority as a letting agent, operating under the same marketing name together with one or more other traders or legal persons, who undertakes to comply with fair rental practice and with the moral rules and other guidelines laid down by the Board of Directors or the General Assembly of the Association. Hereinafter referred to as the “chain letting agent”. A trader or legal person may be admitted as a chain letting agent member and may be a chain letting agent member if all the traders or legal persons engaged in the brokerage of rented accommodation under the same marketing name are chain letting agent members or a chain estate agent members of the Association.

If a real estate agent or letting agent who is an ordinary member has several different offices, which must be registered with the supervisory authority, one of the offices is called the main office and the others are called branch offices, according to the information provided by the member.

If an ordinary member is involved in a consortium of two or more sole traders or legal persons engaged in real estate agency or letting agency and operating under the same marketing name, all of which are chain estate agents or chain letting agents, the consortium is called a chain.

Only traders or legal persons engaged in real estate brokerage or rental housing brokerage who are registered with the supervisory authority may operate in the chain. One chain estate agent or chain letting agent designated by the chain is called the main office of the chain and the others are branch offices of the chain.

If a chain or a chain estate agent or chain letting agent included in the chain has several different offices, which must be registered with the supervisory authority, the different offices are called branches of the chain.

In order to be accepted as an ordinary member, the sole trader or legal person must also have complied with the law, good agency practice and practices laid down by the Association and generally accepted practices, and the application for membership must be submitted for an opinion to a party designated by the Board. The application for membership shall be made in writing and shall be accompanied by such evidence of the applicant’s eligibility for membership, integrity and professional competence as the Board may deem sufficient.

Membership is decided by the Board of Directors of the Association.

5 § Trial members

An applicant for ordinary membership of the Association may be accepted as a trial member before being admitted as an ordinary member. The trial member must meet the requirements for an ordinary member set out in Article 4 of these Articles. The trial membership must last for a maximum of two years from the date of admission as a trial member. The trial member must be admitted as an ordinary member or expelled within two years of being admitted as a trial member. A trial member may be expelled if the trial member has not been admitted as an ordinary member within two years of becoming a trial member.

The application for membership must be made in writing and must be accompanied by a statement deemed sufficient by the Board of Directors that the requirements for membership are met. Membership is decided by the Board of Directors of the Association.

A trial member has the same rights and obligations as an ordinary member, unless otherwise provided in these Articles.

6 § Other members

Person members of the Association may include:

Persons working in the sector who are qualified in accordance with laws and regulations, who are in control of themselves and their property, and who are employed by a member of the Association who is an ordinary member. They must also have at least one year’s experience in the sector. The person’s employer must endorse the application for membership. The application for membership shall be made in writing and shall be accompanied by such evidence of the qualifications for membership as the Board of Directors may deem sufficient. Membership is decided by the Board of Directors of the Association.

Membership of the Association as a regional association is open to:

Registered regional associations set up by members. The by-laws of a regional association member and any changes to them must be approved by the Board of Directors of the Association. Membership is decided by the Board of Directors of the Association.

Community members of the Association may include:

Other sole traders, legal persons and natural persons who do not meet the criteria for ordinary membership but who are closely involved in matters relating to real estate agency or letting agency. Membership is decided by the Board of Directors of the Association.

The following are eligible as supporting members:

Other private traders, legal persons and natural persons who do not qualify as ordinary members but who wish to support the activities and aims of the Association. Membership is decided by the Board of Directors of the Association.

Honorary members of the Association may include:

The Board of Directors may appoint as an honorary member a person who has rendered outstanding service to the Association or a person who is not a member of the Association and who has contributed to the realisation of the Association’s purpose. There may be several honorary members at any one time.

The Board may, if it wishes, invite a former distinguished Chairperson to be Honorary Chairperson of the Association. There may be only one Honorary Chairperson at any one time.

Senior members of the Association may include:

Ordinary members who have ceased to be estate agents and who no longer meet the criteria of an ordinary member. A body designated by the Board shall give an opinion on the application for membership. The application for membership shall be made in writing and shall be accompanied by such evidence of the qualifications for membership as the Board of Directors may deem sufficient. Membership is decided by the Board of Directors of the Association.

7 § Membership and joining fees

The General Assembly decides on the annual joining, membership and service fees to be charged and their payment schedule.

Real estate agents and letting agents who are ordinary members are required to pay an annual membership fee. The annual membership fee consists of a fee calculated on the basis of offices (main office fee and branch fee) and a per capita fee calculated on the basis of the number of employees working in each office.

Chain estate agents and chain letting agents who are ordinary members are required to pay an annual membership fee, which is the responsibility of the main office of the chain. The annual membership fee consists of a basic chain fee and a branch fee for the chain and a per capita fee calculated on the basis of the number of employees working in each office.

The fees for the main office and the branch office may be different. The basic chain fee and the branch office fee of the chain may be different. The fees for the main office and the branch office may be different from the basic chain fee and the branch office fee of the chain. The annual membership fees of an ordinary member letting agent, chain letting agent, estate agent and chain estate agent may be different.

Payments must be made for all the member’s offices.

A trial member is required to pay an annual membership fee. The annual membership fee is determined in the same way as the membership fee for an ordinary member.

Person members, regional association members, community members, supporting members and senior members are required to pay an annual membership fee. These membership fees may vary for each category of member.

A member joining in the middle of a calendar year is obliged to pay the annual membership fee for the quarter in which the membership takes effect and for subsequent quarters.

Ordinary members, trial members, person members, regional association members, community members, supporting members and senior members may be charged separate service fees, the amount of which depends on the services used by the member.

Real estate agents, letting agents, chain estate agents and chain letting agents who are ordinary members, and trial members and person members, regional association members, community members, supporting members and senior members who are other members are also required to pay a joining fee when they join. The joining fee is due at the same time as the membership fee.

Honorary members and honorary chairpersons are not charged a joining or membership fee.

The membership fee can be paid in up to four instalments.

The General Assembly may decide that the annual membership fee is charged at a reduced rate if the member pays the membership fee in one instalment or if the business of a long-term ordinary member is of small volume. The amount of the reduction, the long-term membership and the small volume of business is decided by the General Assembly. The discount granted on different grounds may vary. The discount granted on the basis of the small volume of business of a long-term ordinary member may vary depending on the turnover. Sufficient evidence of the fulfilment of the conditions of long-term membership and small volume of business must be presented to the Board.

Upon separate application, the Board of the Association may grant an exemption from the annual membership fee due to illness or temporary suspension of operations of a member. The member must provide sufficient evidence to support the application.

The Board of the Association may, at its discretion, given an exemption from the obligation to pay the joining fee to a person who has previously been a member of the Association or whose application for membership is based on a change of company form.

The General Assembly may decide to charge ordinary members an additional membership fee, if any, up to the amount of the membership fee.

8 § Rights of an ordinary member

Ordinary members are entitled to receive from the Association the advisory, information, training and other services and benefits defined by the Board of Directors on the basis of their membership. Members are entitled to use the official symbols of the Association in the manner determined by the Board of Directors of the Association.

To qualify for membership rights and to keep them in force, a member must have no outstanding membership fees.

9 § Rights of other members

Other members are entitled to receive from the Association the advisory, information, training and other services and benefits as determined by the Board of Directors on the basis of their membership. The rights of a member are determined by the category of the member, taking into account the equality of members.

To qualify for membership rights and to keep them in force, a member must have no outstanding membership fees.

10 § Obligations of an ordinary member

A member must inform the Association of all the member’s places of business and the names of the full-time or part-time employees at each place of business for entry in the register of members kept by the Association.

A chain must notify the Association of all the names of the members of the chain, the main office of the chain and the branch offices of the chain, the offices of the chain or of the members of the chain and the names of the full-time or part-time employees in each office for entry in the register of members kept by the Association. Each member of the chain is responsible for supplying the information belonging to the chain.

In addition, a member must declare his/her responsible manager.

A member must also notify the Association without delay of any other changes to membership details, such as name, address, company form or change of ownership.

At the request of a member and within the limits of the rules laid down by the Board of Directors, an employee who does not, as a rule, carry out real estate agency or letting agency work may be excluded from the register of members. When making such a request, the member shall provide an explanation of the duties of the employee concerned.

A member must train its staff and ensure that all its employees have the necessary skills to carry out their duties. An annual report on the training of staff must be submitted to the Association by a date to be determined by the Board.

A member must respond to membership surveys and other enquiries sent by the Association within the time limits indicated.

11 § Obligations of other members

Other members must notify the Association without delay of their contact details and any changes thereto, changes in the name or company form of the member and any changes of ownership. Members must respond to membership surveys and other enquiries sent by the Association within the time limits indicated.

A member of a regional association must also submit to the Association a list of its members at the end of the previous calendar year within the time limits indicated.

12 § Resignation and dismissal from the Association

A member may resign from the Association by giving written notice to the Board or Chairperson or by announcing his/her resignation at a General Assembly for entry in the minutes.

If an ordinary member resigns from the Association, the person members in its service must resign from the Association at the same time.

Upon the termination of employment of a person member, the person member must also resign from the Association. If, after the termination of employment, a person member joins another ordinary member of the Association, the person member may apply for transfer of membership as an old member.

In addition to the provisions of the Associations Act, the Board of the Association may dismiss a member in the following cases:

1) the member’s activities are not in conformity with the activities and purposes of the Association or with the guidelines and regulations laid down by the Board of Directors or with the generally accepted practices in the real estate agency and letting agency sector,

2) the member commits an act contrary to law or good agency practice,

3) the member fails to comply with the obligations imposed on it by the rules,

4) the member is not entered in the register of the supervisory authority,

5) the member is part of a chain in which there is a trader or legal person who is not registered with the supervisory authority,

6) the member belongs to a chain where not all traders or legal persons are members of the Association,

7) the member belongs to a chain whose membership fee is unpaid.

A member who resigns or is expelled in the middle of a calendar year must pay all fees due under the rules prior to the date of resignation or expulsion for the entire quarter in which the resignation or expulsion occurs. Fees paid to the Association are not refunded.

Instead of dismissal, the Board may issue a warning or suspend a member.

Before taking a decision to expel or issue a warning, the Board shall give the member an opportunity to explain the grounds for the action, except where the reason for expulsion is non-payment of the membership fee.

If the reason for expulsion is the conduct referred to in paragraph 1) above, a decision to expel may be taken only if the member, despite a warning containing a statement of reasons, fails to comply with the approved guidelines, regulations or policies.

The expelled member has the right to appeal the expulsion decision to the General Assembly by means of a letter of appeal, which must be submitted to the Board within 30 days of the date on which the member was informed of the expulsion decision. The membership continues during the period in which the appeal against the expulsion decision is pending before the General Assembly.

A resigned or expelled member has no share in the assets of the Association.

13 § Administrative and institutional bodies

The decision-making power of the Association is exercised by the General Assembly.

The executive body is the Association’s Board of Directors. The General Assembly and the Board of Directors may set up standing or ad hoc committees, working groups or other bodies they deem necessary for the preparation of matters.

14 § Annual General Assembly

The Annual General Assembly of the Association is held annually on a date set by the Board in September-December.

The following matters are to be discussed at the Annual General Assembly of the Association:

1) elect a chairperson, secretary, two scrutinisers of minutes and tellers,

2) present the annual report of the Board of Directors for the previous calendar year,

3) present the financial statements for the previous calendar year and the auditors’ statement,

4) decide on the adoption of the financial statements,

5) decide on the formal approval of reports and accounts,

6) approve the Association’s action plan for the following year,

7) determine the amount of the joining and membership fees and service fees for the following year, the criteria for discounts and the due dates of the fees,

8) adopt the budget for the following calendar year,

9) confirm the amounts of the fees and travel allowances of the Chairperson and Deputy Chairperson, members of the Board of Directors, members of the Regional Council, members of the committees and the auditor,

10) elect a Chairperson or Deputy Chairperson to replace the retiring ones,

11) elect the members and alternate members of the Board of Directors to replace the retiring ones,

12) decide on the number of members of the Regional Council,

13) elect the members of the Regional Council in accordance with Article 21 of the rules,

14) elect one HT or KHT auditor and a deputy auditor or HT or KHT audit firm,

15) discuss any items that have remained on the table,

16) consider matters submitted by the Board of Directors and matters submitted in writing by the members of the Association to the Board of Directors at least 30 days before the meeting, taking into account the provisions of Section 24 of the Associations Act.

15 § Extraordinary General Assembly

An Extraordinary General Assembly shall be held when the General Assembly so decides or when the Board of Directors considers it necessary, or when at least one tenth (1/10) of the members of the Association with voting rights request it to deal with a matter which they have notified.

The request for a meeting must be made in writing to the Board of Directors of the Association, stating the matter or matters to be discussed at the meeting

16 § Right to be present, right to speak and remote participation

Person, community, supporting, senior and trial members have the right to attend and speak at Association meetings.

Regional association members have no right to attend or speak at Association meetings.

The CEO of the Association and the staff of the Association’s office have the right to attend and speak at Association meetings.

If the Board so decides, the meeting may also be attended by post or by telecommunications or other technical means during or before the meeting. The decision may also concern only part of the business to be discussed at the meeting.

17 § Convening of General Assemblies

The General Assemblies are convened by the Board of Directors. The summons to the General Assembly shall be sent to each member in writing or by e-mail to the address indicated by the member.

The summons may also be delivered by publication in the Association’s newsletter, which is sent to all members. The summons to the Annual General Assembly or the newsletter containing the summons to the General Assembly must be posted or, if sent by e-mail, sent at least 30 days before the General Assembly, and at least 14 days before the General Assembly in the case of an Extraordinary General Assembly. The summons to the General Assembly shall state the business to be discussed at the General Assembly.

If the General Assembly can also be attended by post, telecommunications or other technical means, this must be stated in the summons to the General Assembly. The summons to the General Assembly shall also state if the right to speak of a member attending the General Assembly by post or by telecommunications or other technical means is restricted or if the member must notify the Association in advance of his/her attendance at the General Assembly by the date specified in the summons in order to be entitled to vote at the General Assembly.

18 § Voting rights

An ordinary member who has fulfilled his/her membership fee obligations in accordance with the rules, an honorary member and an honorary chairperson have the right to vote at the General Assembly as provided in these rules.

At the General Assemblies of the Association, each ordinary estate agent member, letting agent member, honorary member and honorary chairperson has two votes.

A chain estate agent member serving as the main office of the chain and the chain letting agent member serving as the main office of the chain have two votes at the General Assemblies. The chain estate agent member and the chain letting agent member serving as a branch office of the chain shall not have the right to vote or to speak or be present at the meetings of the Association.

Person, regional association, community, supporting, senior and trial members are not entitled to vote.

An ordinary member and an honorary member and the honorary chairperson may authorise in writing a person to exercise their right to vote at meetings of the Association on their behalf.

A person may vote as a proxy at a General Assembly on behalf of up to five members with voting rights.

If the Board so decides, a member must notify the Association in advance of his/her participation in the General Assembly no later than the date specified in the summons of the Assembly in order to be entitled to vote at the Assembly.

19 § Activities of the Board of Directors

The affairs of the Association are managed by a Board of Directors consisting of the Chairperson, Deputy Chairperson, six other ordinary members and two deputy members. The deputy members and the CEO of the Association have the right to attend and speak at all meetings. The right to participate in decision-making is held by that deputy member who has been appointed by the absent ordinary member to take his/her place at the meeting.

The term of office of the Chairperson and Deputy Chairperson and of the ordinary members and deputy members of the Board of Directors shall begin at the beginning of the calendar year following their election and shall be two years, with the Chairperson or Deputy Chairperson and half of the ordinary members and deputy members of the Board of Directors standing down each year.

The same person may serve on the Board in the same capacity for a maximum total of three consecutive terms.

The Board meets at the summons of the Chairperson or, in his/her absence, of the Deputy Chairperson.

The Board constitutes a quorum when the Chairperson or Deputy Chairperson and at least three other members of the Board are present. A decision of the Board of Directors is the opinion endorsed by more than one half of the votes cast. In the event of a tie, the opinion supported by the Chairperson shall prevail, except in the case of elections the decision is made by drawing lots.

The Chairperson or Deputy Chairperson of the Board shall lead the discussion at Board meetings, manage the Association and its activities, and perform such other duties as the Board may assign to him or her.

20 § Tasks of the Board of Directors

The Board exercises the executive powers of the Association. The Board represents the Association and manages its affairs in accordance with the decisions of the General Assemblies, and leads the Association’s lobbying work. The Board elects and dismisses the CEO and other employees of the Association, determines their salaries and related benefits and their duties. The Board, together with the CEO, manages the finances of the Association and proposes to the General Assembly the amounts and due dates of the joining and membership fees to be paid by the members and other fees specified in the rules. The Board convenes the General Assemblies and prepares the business to be discussed at the General Assemblies, and draws up the annual report, the financial statements, the budget and the plan of action of the Association.

The Board may take any initiatives it deems necessary to improve the general economic and social situation of estate and letting agents. The Board shall monitor the activities of the sector and, if it detects any irregularities, shall take the necessary measures. The Board shall draw up guidelines for the award of medals and other decorations to deserving persons, decide on the election and dismissal of committee and working group chairpersons and, where appropriate, members, and on the guidelines and objectives of sections, committees and working groups. The Board may authorise the chairpersons of the committees and working groups to invite the members of the committees and working groups, with the exception of the Ethics Committee, whose members shall be elected by the Board.

21 § Regional Council

The Regional Council is a permanent body, chaired by the Deputy Chairperson of the Association and composed of at least five and no more than 20 members at any one time during the calendar year. A body designated by the Board of Directors of the Association may propose one member to the Regional Council for each region.

The Regional Council constitutes a quorum when more than half of the members of the Regional Council are present.

The Regional Council discusses the matters submitted to it by the Board of Directors of the Association and makes proposals and submissions to the Board for the organisation and promotion of the future activities of the Association.

The Regional Council assists and supervises the Board of Directors.

22 § Sections, committees and working groups

The standing committee of the Association is the Ethics Committee.

The Ethics Committee deals with complaints about members of the Association. The Ethics Committee has the right to draw the attention of a member of the Association to any conduct in violation of the law, good agency practice and the Association’s own rules and regulations if any conduct by the member is found to be in violation of these. The Ethics Committee shall also have the right to reprimand a member of the Association for conduct that is contrary to law, good agency practice or the Association’s own rules and regulations.

The Ethics Committee shall present to the Board of Directors matters proposing other disciplinary action against a member of the Association under these rules. In addition, the Ethics Committee may give opinions to public authorities and to traders, consumers and members of the Association. The fees to be charged for such opinions shall be determined by the Board of Directors of the Association.

The Board may set up other sections, committees and working groups under its authority for specific tasks. Their functions shall be determined, in addition to those expressly provided for in these rules, by the decision of the Board when they are established or by the guidelines relating to them. The funds accruing from the activities of the sections, committees and working groups shall be the assets of the Association, and their use shall be decided by the Board of Directors.

The members of the committees and working groups must have sufficient legal expertise and insight into the practical performance of agency work. Members of committees and working groups may also be invited from outside the Association. The term of office of the committees and working groups shall be one calendar year.

23 § CEO

The Board of Directors may elect a CEO for the Association. The CEO shall be responsible for the day-to-day running of the Association, assisting the Board. The CEO is responsible for preparing and presenting matters for discussion at meetings of the Board and the Regional Council and for implementing the decisions taken at these meetings. The CEO shall manage the office of the Association and shall direct the duties of the staff in accordance with the decisions of the Board of Directors. The CEO is responsible for monitoring the budget and reports to the Board.

24 § Signing for the Association

The Chairperson, Deputy Chairperson and CEO of the Association, each on their own, and such officers and trustees of the Association as the Board may designate, two together, can sign for the Association.

25 § Financial statements and audit

The financial year of the Association is the calendar year. The accounts and administrative documents must be submitted by the end of March to the auditor, who must give his/her written opinion to the Board of Directors by the end of April at the latest.

26 § Donations and property

The Association is entitled to receive bequests and donations and to own real property and movable property necessary for its activities.

27 § Amendment of the rules

To amend these rules, a decision of the General Assembly is required, supported by at least two thirds (2/3) of the votes cast. Prior to the General Assembly, the amendment of the rules must have been submitted to a meeting of the Board of Directors.

The summons to the meeting must state the proposed amendment of the rules and the content of the amendment.

28 § Dissolution of the Association

The proposal to dissolve the Association shall be submitted in writing at least two months before the General Assembly to the Board of Directors, which shall submit the proposal for the dissolution of the Association, together with its own statement, to the General Assembly for consideration and decision.

At least three-quarters (3/4) of the votes cast at the General Assembly shall be in favour of the proposal to dissolve the Association, and the decision to dissolve shall be confirmed by a similar majority at the next General Assembly. The period between the General Assemblies shall be at least one month. The dissolution of the Association and the stages of its proceedings shall be expressly mentioned in the summons to the Assembly.

If the Association is dissolved or dismantled, its assets shall be transferred to a legally valid non-profit organisation corresponding to the activities of the Association or, if this is not possible for any reason, in that case to another similar non-profit organisation, in accordance with the decision of the last General Assembly.

Otherwise, the provisions of the Associations Act shall apply.

29 § Membership rights acquired

Acquired membership rights are maintained.