Ethics in real estate must begin within the real estate industry. Agents have much work to do if they are to regain the trust of sellers and buyers. To improve the ethics in real estate is not easy. It requires agents to accept the irrefutable evidence that many of their systems hurt consumers. And that's what most agents won't do.
* Determine and periodically review the suitability of real estate investment
A proper market analysis and review is to be done and this requires that the advisor know the financial situation, age, personality, goals, training, and experience of the person seeking advice and only recommend investments that are suitable to such an individual.
* Disclose your true identity
Disclose the true identity pertinent education, license and/or certificates, and experience to the person seeking real estate investment advice.
* Disclose all the risks of any course of action recommended
Investment can be visualized as 2 sides of a coin. It has it own risk and on the other side, reward. When discussing to the client, both aspects will have to be dealt with in detail thus giving the person a better decision making choice.
* Disclose all the costs of investing
All costs pertaining to investing into real estate should be plain and transparent to person seeking advice. The client should not stand in a position where he feels that he was not mentioned about any particular cost. In other words, no costs should be hidden.
* List all properties ever owned
All properties owned should be listed properly. Falsely representing past or current ownership or activity in real estate is illegal.
* Pertinent Laws to be adhered
Real estate investment is one of the most law-related business there is. Investors must constantly be knowledgeable about the pertinent laws. They cannot rely on lawyers because there is no such thing as a generalist in the legal profession.
* Confidentiality
Real Estate personnel must keep confidential the personal information provided by a client. The reason a home or land is being sold is generally of no relevance to anyone other than the client. In cases of sales of homes of well-known or prominent people, personnel must never reveal the identity of the client unless the client expressly instructs that his or her name be revealed.
* Fully disclose any potential conflict of interest
Kickbacks generally are required to be disclosed by professional codes of ethics and in some cases by statutes. It is recommended not to accept investment advice at all from an advisor who has a conflict of interest with you, disclosed or not.
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