Our Ethics
Ethics in real estate involves more than simply using the word "ethical". An ethical approach requires putting into practice procedures and systems that actually
deliver value for money.
An Ethical Approach
Our sales approach is the most ethical
in the real estate industry. How do
we justify such a bold claim? We have removed the procedures and behaviours
that give rise to ethical problems.
Here are a few examples of the ways we offer a high quality alternative;
| 1. |
We adhere to a code of conduct that is strict and all encompassing.
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| 2. |
We do not use any form of Exclusive Sale Authority.
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| 3. |
Our qualifications and industry knowledge are vastly superior to others in the industry (see "negotiation").
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| 4. |
We do not charge a commission
according to the value of our client's property. Rather we charge a fixed fee, based on the service provided.
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| 5. |
We do not keep the vendor and purchaser apart. Transparency of process entails the right of the vendor to communicate freely with intending purchasers.
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| 6. |
We will never act in a situation of conflicting interests:
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We do not give valuations, "appraisals" or opinions as to the value of a client's property. All clients must have the benefit of an independent, accredited professional real estate valuation.
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We use standard prescribed form contract documents. Every potential purchaser is advised to seek independent legal advice from a qualified legal practitioner.
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| 7. |
We recognise the security issues and insurance problems
associated with escorted inspections. Our vendors conduct the inspections offering invaluable insight into the property, whilst ensuring that the security and safety of their property.
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| 8. |
We provide true agent representation.
Our clients are legally represented at all stages of the sale transaction, and enjoy a full lawyer/client relationship throughout.
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Our Code of Conduct
The Lawyers Real Estate Code Of Conduct sets out the fundamental
principles that underpin our approach to the sale of real estate.
Commissions
The charging of a commission according to the value of a vendor's property is unethical and unfair. Fees must be based on service, not property value.
Valuations
Determining the value of real estate requires the skills
of a qualified and professionally trained valuer, who is engaged by the vendor, and independent
of every other party involved in the sale transaction.
Truth in Pricing
The use of devices such as false price ranges or bait pricing causes frustration and suspicion. A price range must be informed by an independent valuation, and the method of its calculation fully disclosed.
Legal Representation
The sale of real estate involves a written and legally enforceable contract. No person will be invited to
sign an offer or contract without first being advised to obtain independent legal advice
from a qualified legal practitioner.
Exclusive Sale Authority
The Exclusive Sale Authority currently used to engage an estate agent
in the State of Victoria is unethical and unfair. No vendor will be required to enter into any form of exclusive sale authority.
Conflicting Interests
Examples of conflicting interests
include:
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Acting for more than one party in one transaction. |
| • |
Preventing a vendor from having direct contact with a potential
purchaser. |
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Acting for a vendor, but purporting to assist a purchaser without
advising the purchaser to seek independent legal advice. |
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Acting for a vendor, but assisting a purchaser, contrary to the
interests of the vendor. |
All circumstances of conflicting interests are to be avoided, and expert guidance sought where any doubt exists.
Fair Dealing and Good Faith
The relationship between lawyer and
vendor is such that the vendor is entitled to the full benefit of the lawyer's
skill and knowledge. The lawyer will act in good faith at all times, and
in accordance with his/her fiduciary
duty.
Legal Notice
All visitors to this website are advised to read our
Disclaimer regarding the limited use of information provided on this website.
© 2011 Lawyers Real Estate
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