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Ethics In Real Estate

In real estate, the opposite has occurred. Thousands of agents, focused on self-interest, have developed systems and habits which are so bad they can't help hurting sellers and buyers. They do the wrong thing almost instinctively.
There is often a big difference between what is legal and what is ethical. Many agents use 'legal' as their standard. It is legal to receive kickbacks and so they do it. It may be legal to have 'dummy bidders' and so they do it. It is legal to quote one price to sellers and another price to buyers and then blame the market. It is legal to take money from home sellers in the full knowledge that this money is not to promote the property but to promote the agents.
The lack of ethics in the real estate industry is one of our greatest national scandals. And, in many ways, it is a hidden scandal because thousands of consumers do not realize how they are being hurt. There should be a major independent Enquiry into the millions of dollars being lost by real estate consumers.
Ethics in real estate will help all to become winners in real estate. It will make the business of buying or selling a home the wonderful experience its meant to be.
Real estate transactions have two 'sides'; the Listing Side and the Selling Side (If a single agent represents both the Seller and Buyer on the same property, they are credited with two 'sides' to the transaction). The majority of all real estate transactions involve more than one agent and more than one real estate company.

Real versus personal property: -------------

Property may be classified as either real property or personal property, and distinguish-ing between the two is important for several reasons. In real estate transaction all property that is real goes to the purchase while all personal property stays with the seller. Another reason is that taxes are levied differently on real and personal property.
Any real estate licensee working under another Broker's license as an 'Agent,' even though he or she may hold a Broker's license: ------------

A real estate agent who is licensed only as an agent, and not as a broker, cannot sell real estate on his or her own. They must place their license with a licensed real estate Broker to sell property. A licensed real estate broker may work independently, or place their license with another broker, working together with other agents and brokers under that Designated real estate broker's license.

Relationship between market value and prices: ------------

A price obtained for a specific property under a specific transaction may or may not represent that property's market value: special considerations may have been present, such as a family relationship between the buyer and seller, or else the transaction may have been part of a larger set of transactions in which the parties had engaged. Another possibility is that a specific buyer would be willing to pay a price higher than the market value. Such situations often arise in corporate finance, as per example when a merger or acquisition is concluded at a price which is higher than the value represented by the price of the underlying stock. The usual rationale for these valuations is that the 'sum is greater than its parts', since full ownership of a company entails special privileges for the buyer for which he is willing to pay. Such situations arise in real estate/property markets as well (see value-in-use). It is the task of the real estate appraiser/property valuer to judge whether a certain price obtained under a certain transaction is indicative of market value

According to a report of Nielsen/ Net Ratings, real estate-related Internet traffic reached 21.6 million users in April 2005, a 26 percent increase from November that meets every aspect of the consumer’s needs in the real estate industry and will be a one - stop source for buying, selling or leasing any type of property anywhere in the country.Whether commercial or residential, understands the customer’s requirements and serves with state of the art quality and assurance in every job.”

The CEO of the company Mr. Mahajan has developed this Real Estate Portal.
While talking with him he said, The most basic study of ethics is lacking from the common real estate courses. Ethics is good business. And ethics begins with how people are taught to act. It begins with education and training. 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.

About the Author: HariKishan Pal is an author related to
For listings of real estate auctions, please visit (India Property Portal) - India Property Portal

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