A lack of ethics occurs when there is unfair competition, for example: A manager of a real estate agency orders his employees to work for a certain time in an agency that is his direct competitor, in order to obtain classified information to later benefit from it.
Another instance of unethical behavior is obtaining clients by charging professional fees lower than those established in the market (for example, less than 3%); as well as using third parties to directly contact property owners.
Furthermore, it can be considered unethical for two real estate agents to fail to comply with the agreements made by both of them through a real estate brokerage contract; or for one agent to speak ill of another agent, discrediting them in front of the client in order to get them to hire their services.
Likewise, it is possible that the clients of real estate agents themselves may commit ethical breaches, such as when they refuse to pay the professional fees of the real estate agents (it was agreed to pay 3% of the value of the sale of the property and in the end they pay 1.5%).
Another transgression by the client may be to hide information from the agent or give distorted information, such as indicating that he is the sole owner of the property and not indicating that he has a partner who would have rights over it.
To avoid concealing information about the property's characteristics and its legal status, the agent in charge of a property must be a diligent professional and carry out all the legal and administrative procedures relevant to the real estate business they are managing.
Many real estate agents allow owners to try to deceive buyers. Exorbitant prices and price bargaining are typical examples. Phrases like, "We know the property is overpriced, but we're listing it at US$180,000 so we can lower the price if necessary," are common.
Some real estate associations turn a blind eye when property developers overvalue their homes and use misleading advertising, for example by putting the Specifications in small print and in only 500 words.
It is important to be clear about what constitutes a violation of the code of ethics in order to make changes, since many times the rules of the game are established only on paper but are not followed due to a lack of clarity.
Source: Peruvian Society of Real Estate
