The Bangalore Real Estate Co. Code of Ethics in Practice

There are a number of global ethical codes relating to international real estate agency. There are also many country specific and professional body specific codes. The formal code that applies to us depends upon the RERA Regulations in India and the sectors within which we practise. As we are a member of multiple professional bodies we also refer to the code of practice or conduct for the relevant industry bodies. This document considers our overarching ethical responsibilities of real estate practice and provides best practice to help us serve you better:

• We will conduct business in an honest, fair, transparent and professional manner.
• We will carry out work with due skill, care and diligence, and ensure that any staff employed has the necessary skills to carry out their tasks.
• We do the utmost to avoid conflicts of interest and, where they do arise, deal with them openly, fairly and promptly.
• We do not discriminate unfairly in any dealings.

Ethics and professionalism

We have both legal and ethical responsibilities. The legal responsibilities are set out within our public or private laws for India. Ethical obligations impose a higher level of responsibility and may have not only legal but moral obligations. The resolution of issues often involves a subjective decision based on personal ethical values and those ethical rules set out in our active professional codes of conduct. Laws may also set out the legal responsibilities regarding our conduct.

Professional ethics set out the standards of performance and service the general public can expect to receive from a professional real estate agent. The 12 principles of this professional statement set out the standards of performance and service the general public can expect to receive from you as a real estate agent and ensure that you act professionally at all times. There are many definitions of professionalism. Professionalism is the giving of one’s best to ensure that clients’ interests are properly cared for, but in doing so the wider public interest is also recognised and respected.

Our general duty of care as a real estate consultant

It is required that we carry out work with due skill, care and diligence. This means that we :

• use our best endeavours to achieve the best possible outcome for our client, within the limitations of the market conditions and the observation of ethical codes
• not release or misuse any information confidential to our client without their express permission, or unless legally required to do so
• not appoint a sub-agent without the express permission of our client (unless we use a multiple listing system approach), and ensure that any sub-agent complies with this professional statement
• ensure that all staff are appropriately trained and supervised for the tasks assigned to them and
• not accept an instruction which is beyond your field of experience, unless you secure the assistance of a specialist in that particular field.
• You must always ensure that you carry out all services with reasonable care and skill. What is ‘reasonable’ is measured by the standards of a reasonably competent and experienced member of the real estate agency profession.
• The duty of care and skill applies to every aspect of your services.

Our duty of care when acting for the seller

Our duty of care exists throughout the period of our instruction. This includes exercising reasonable care and skill in advising on an appropriate asking price or rent for the property (see section 3.1) through employing the marketing strategy, and our advice to client on whether or not to accept a particular offer.

Our duty of care when acting for the buyer

Again, our duty of care will exist throughout the period of the instruction. Where we are instructed by a potential buyer to seek a suitable property for them we take reasonable care to ensure that information which we pass on to our client is not misleading. The test of what is reasonable will be determined by the individual circumstances.

Dealing with conflicts of interest

A conflict of interest is anything that impedes our ability to focus on the best interests of the client. This is a matter for our judgment – not the client’s. We make every attempt to avoid any conflict of interest that might not be in the best interest of a seller or a buyer for whom we are acting. The 12 principles of this professional statement require that we mitigate conflicts of interest and deal with them openly and fairly and immediately as they arise.

We disclose any interest in the property promptly and in writing. We have regard to the particular circumstances of the situation in which we are involved before deciding whether to disclose any interest. In the event of multiple agencies for one of the parties, we must pay equal respect to our clients’ interests and also work in this situation with the highest possible degree of transparency. Conflicts of interest should be avoided but where this is impossible we cease our activities for all clients involved. In the interests of best practice we disclose all interests but in all cases we consult our client, take their instructions and keep a full note of the discussion and instructions in the file.

Understanding

Discrimination

We do not discriminate against any existing or potential party to a transaction. We do not :

• discriminate on the basis of gender, age, race, creed, religion, disability, sexual orientation, or national origin or
• favour any party because they are likely to instruct us on other property matters, or use services offered by us or our related parties.

We ensure that you do not discriminate unfairly against any party :

• in the terms on which a property is offered
• by refusing to sell or lease the property or
• in our treatment of persons in need of property for occupation or investment purposes.

Vulnerable customers

Vulnerability can include anything that may have an impact on a person’s ability to make a sound and reasoned decision.

We ensure that you do not discriminate against vulnerable customers – either explicitly or implicitly – by your actions. Customers can include actual and potential buyers, sellers, landlords and tenants, as well as our client.

Assessing the potential vulnerability of a consumer can be a sensitive matter and may require us to make a judgment. Staff should understand their obligations in this area and, our managers have in place appropriate procedures and relevant training to deal with these matters.

We must be willing and able to offer appropriate advice about the transaction process to all potential and actual customers. We should not make assumptions about the degree of knowledge that a person has. We set out all the necessary information, explain what we will do, and what others (e.g. legal advisers, surveyors, financial advisers, lenders) will do. If, in our opinion, the customer may be vulnerable we take this into account in any information or guidance we give to them – particularly if any decision they make is based solely on that information or advice.

If a customer makes a decision that may have legal connotations, we explain that they should discuss this with their legal advisers. We might also consider speaking to the customer’s legal advisers if you are concerned about any decisions that are being taken.

Responsibility for others

We employ staff who is responsible for their actions as well as our own. We :

- train staff initially and on a continuous basis, and keep knowledge of that training and who received it

• maintain awareness of the legislation and relevant codes of practice
• supervise staff adequately
• be careful about appointing sub-agents and/or co-agents to the extent that is possible when multiple listing systems are used and/or the cooperation of other agents is invited on a commission-sharing arrangement
• be aware of who our related parties are and satisfy our self that they are aware of any legal and ethical requirements and can be relied upon to comply with them.