Ethical concern can be referred to as a problem or situation that requires a person or organisation to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical)
Ethical conduct in real estate industry of Uganda is stipulated in the code of conduct of Association of Real Estate Agents of Uganda (AREA)
Ethical concerns in real estate industry can include the following. They are both ethical and unethical.
Agency disclosure.
It is an ethical for a real estate agent to convey to a purchaser of the property about the mandate that has been given to him to sell, let, buy, or hire the property that is mandated to the agent.
Property disclosure.
All real estate agents under the code of ethics are required to disclose all known material facts above the property to clients and customers.
Advertising.
Real estate agents should not put misleading information in advertising and listing information.
Confidentiality.
Real estate agents when discussing their listing with buyers who ask about the sellers and their motivations for selling.
Exaggeration.
Real estate agents/brokers should not exaggerate or misrepresent property condition, market value, costs or other factors that can lead to a law suit.
Double commission.
This refers to a situation where the Real estate agent represents both the seller and the buyer in a sale and receives commission from both ends.
Blockbusting.
Blockbusting refers to a practice of encouraging the panic selling of homes below market value
Double selling of land.
This is a real estate unethical behaviour where a home owner or Real estate agent sells a single property twice obtaining funds from each buyer.
Discrimination.
Some clients may be unethical e.g. they may request that you refrain from showing their property to certain groups of people or voice a preference for a type of buyer or tenant based on a protected class.
This is a real estate unethical behavior where a home owner or Real estate agent sells a single property twice obtaining funds from each buyer.
DUTIES OF A REALTOR
Display commercial, industry, agricultural and residential properties, clients and explain their features.
Present purchase offers to sellers for consideration.
Negotiate price and other sale terms.
Advising the clients on market conditions.
Promote the sales of real estate properties.
Prepare documents needed in real estate.
Arrange for the property title searches.
Appraise properties.
CAUSES OF UNETHICAL CONCERNS IN REAL ESTATE
To Home Buyers
Unethical concerns include under pricing, delay of payment among others.
Ignorance.
Lack of clear policies guiding real estate markets.
Lack of clear information.
Self interest.
Existence of buyers market
To Home sellers
Include over pricing, double selling, exaggeration among others.
Greed for money.
Lack of regulations in the market.
Existence of sellers market.
Lack information about the market.
Self interest.
Ignorance of buyers.
Lack of code of ethics among home sellers.
To Valuers
Unethical concerns include conniving with prospective buyers or sellers, underpricing and overpricing of properties on sale.
No code of ethics.
Relationship between the valuer and buyer or seller.
Self interest.
Unprofessionalism (lack of skills).
Greed for money e.g. bribes.
No clear rules governing valuers
Ref: MUBS' real estate class of 2019
