ETHICS & REAL ESTATE PRACTICE

Legal Responsibilities & Best Practices in Real Estate

📌 The Role of a Real Estate Professional

Real estate service practitioners play a crucial role in ensuring ethical and legal transactions in the industry. They are responsible for maintaining transparency, protecting clients’ interests, and upholding professional standards.

All real estate transactions must be conducted with honesty, integrity, and full disclosure to protect buyers, sellers, and investors.

🔹 Types of Real Estate Professionals:
✔ Real Estate Brokers – Licensed professionals who manage and oversee transactions.
✔ Real Estate Appraisers – Experts in determining property values.
✔ Real Estate Consultants – Specialists providing investment and property advice.
✔ Real Estate Salespersons – Must work under a licensed broker.

📌 The Code of Ethics & Responsibilities

✅ Honesty & Full Disclosure
Real estate professionals must always provide accurate information, disclose material facts about properties, and avoid misleading advertisements.

✅ Fairness & Transparency
Clients must be treated with fairness and respect, ensuring all transactions are conducted professionally.

✅ Confidentiality & Trust
Client information must be kept private. Personal and financial details should not be disclosed without proper authorization.

✅ Legal Compliance
All transactions must follow government regulations, tax laws, and PRC licensing requirements.

✅ Accountability & Competence
Real estate professionals must take full responsibility for their actions and continuously enhance their skills through training and professional development.

📌 Legal Responsibilities of Real Estate Professionals

📌 Licensing & Accreditation

  • Brokers, appraisers, and consultants must be licensed by the PRC.
  • Salespersons must be accredited under a licensed broker.

📌 Avoid Unauthorized Practice

  • Practicing real estate without a PRC license is illegal.
  • Unlicensed individuals cannot negotiate, advertise, or finalize property transactions.

📌 Penalties for Violations

  • Engaging in real estate service without proper licensing can result in fines of at least ₱100,000 or 2 years imprisonment, or both.

📌 Professional Indemnity Insurance

  • Brokers and private real estate appraisers are required to secure a minimum indemnity bond of ₱20,000, renewable every 3 years.

📌 Displaying a Valid PRC License

  • Every registered professional must display their license in their office to ensure legitimacy.

📌 Continuing Professional Development (CPD)

  • Licensed professionals must regularly attend training and seminars to renew their PRC license.

📌 Best Practices for Ethical Real Estate Transactions

🏠 Respect Clients & Competitors
🔹 Always act professionally and be transparent in dealings.
🔹 Avoid false advertising or misrepresentation of property details.

🕰 Time is Valuable
🔹 Prompt responses and efficient service build trust and client satisfaction.

🪞 Think Before You Act
🔹 Real estate transactions involve large financial commitments. Every action should be carefully considered.

📅 Stay Updated with Market Trends & Technology
🔹 Knowing the latest laws, market conditions, and digital tools ensures professionalism and competitiveness.