ETHICS IN REAL ESTATE AGENCY

Abstract

Over the years, there have been numerous complaints concerning the practices of real estate agents. The main allegations are that agents are generally untrained, unethical and unprofessional. The problems of unprofessional conduct have existed since the emergence of market transactions. Much of this is disparaging and damaging to the real estate agency profession. There is currently no coordinating body to govern real estate practices in Singapore. This study represents an attempt at a discussion of ethics as it relates to performing and managing real estate agency activities. Codes of ethics set standards of behavior expected of practitioners as a structure upon which to build an ethical professional practice of real estate agency. The real estate professional code is basically designed to be a "regulatory code". SISV, ASR and ASREA play important roles in maintaining the professional image of real estate agents. Strict enforcement of disciplinary rules will ensure that high standards of professionalism are maintained by members of the profession. A survey was conducted on local real estate practitioners with regard to expanding efforts, objectives, progress and methods of implementation, along with some information on their clients' perception of ethical codes and the need for ethics education. It appears that the use of a comprehensive code of ethics coupled with an ongoing ethics training program will contribute most effectively to an improvement in the ethical decision-making of real estate agents. While codes will clearly not make unethical behaviour extinct, it is widely felt that they will make practitioners at all levels more responsible and more accountable for their actions. It is believed that codes, properly disseminated and understood, will reduce the possibilities of unethical practice.