REAL-TIME ETHICS IN REAL ESTATE BUSINESS -II

So, what constitutes ethical real estate business practices in real time? I can’t cover all facets of ethical business conduct here; some pertain to clients, others to employee conduct and yet others to Government authorities. However, it is the way in which one deals with clients that makes or breaks vital business relationships. To be brief, I’ll focus on this aspect here.

Among other things, a ethical real estate company ensures that all business information is honestly and accurately recorded and reported in compliance with applicable laws. It also has strict rules against bribes, kickbacks and bartering arrangements, or any other incentives offered to obtain or retain business. In addition, it scrupulously avoids all improprieties or conflicts of interests, and has a strong policy against insider trading.

Ethical business practice also means that a real estate company does not separate the purchaser and the buyer to create additional business advantages. Likewise, it will not attempt to pressure a client into making a decision, or provide any kind of misleading information to prompt a desired decision.

I think it’s clear that this narrows down the field quite a bit – such parameters, when adopted and enforced, certainly eliminate a lot of options for unscrupulous profiteering.

However, ethics must often go beyond the requirements of clients. After all, there are always elements that seek to recruit professional help in exploiting the immense potential of Indian real estate without necessarily adhering to ethical business standards. I would be the last to deny that, even with the new spate of guidelines and legislative amendments in place, there are enough loopholes and inconsistencies in the system to make that possible. In such cases, it pays to keep in mind the telling words of the redoubtable American businessman John Mackey:

“I do not believe maximizing profits for the investors is the only acceptable justification for all corporate actions. The investors are not the only people who matter. Corporations can exist for purposes other than simply maximizing profits.”

A real estate company does not only have a responsibility to its clients – it is also accountable for the state of the market it operates in. Is this important? For long-term players with a clear view of the future, it certainly is. After all, unethical business practices contaminate and weaken the market, and in the long run harm business for everyone.

Source :Anuj Puri - Chairman & Country Head, Jones Lang LaSalle India

Popularity: 1% [?]

REAL-TIME ETHICS IN REAL ESTATE BUSINESS -I

We keep talking of ethical real estate business. Is a ‘code of ethics’ just a fancy manifesto you put on your office wall?  If that was all there was to real estate ethics, it wouldn’t be saying much. After all, thanks to India’s rather unclear legal system, it is possible to follow the path of dishonesty and self-interest without actually doing something illegal.

The fact is, unethical practices in real estate are the product of a short-term, mercenary approach to the business. This phenomenon is most evident in smaller brokerages, which often have no more than a single dealing with many of their customers. Not that all small brokerage houses are unethical (However, there are a number of small operators whose business methods are completely above reproach. They know that good ethics equals good business). The point is a professional real estate company that takes ethics seriously, views and treats every new prospect as potential long-term client.

When every real estate deal is regarded as the first of many to follow, ethical conduct tends to become a natural by-product.

An ethical mindset cannot be enforced. It comes as a result of a higher awareness of how business works best in the current times. The Indian real estate market was notorious for its lack of transparency, but that is changing rapidly. The larger property consultancies are handling a number of international clients now – clients who are eager to enter or expand operations on the Indian subcontinent. Such clients have high standards in terms of service quality and clarity, and are often justifiably worried about being taken for a ride by unscrupulous operators. All they initially have to depend on is the tangible, verifiable ethical approach of their real estate partners on this end.

Popularity: 1% [?]

Star status for Lancor Holdings

‘We ensure that honesty and transparency do not go down in any of our construction projects’, says managing director of Lancor Hold­ings Ltd R V Sekhar.
He said this on the occasion of being awarded seven star ratings for its ‘Abode Valley Project’ yester­day in Chennai. Sekhar also said that the rating gives confidence to the financial institutions which fund the projects and the customers who have mortgaged their properties.

Popularity: 2% [?]

Mallya keen on buying posh Brindavan property in Bangalore



B Group chairman Vijay Mallya, it is learnt, has set his sights on having the best view of Ban­galore’s sky line from his bedroom.
The drinks-to-airlines entrepreneur has evinced keen inte-rest in buying one of the last avail­able land parcels on MG Road, which incidentally houses the city’s iconic Brindavan Hotel.
The 36,000 sqft plot of land, which has been in the market for over two years, belongs to the Rao family who owns and operates the Brindavan Hotel.

Popularity: 2% [?]

Multiplex Chains Plan Expansion

Multiplex chains are expected to add over 200 screens before March 2011 as some of the mall projects that were delayed due to the downturn in the real estate sector are being completed now. Many of such projects were pending due to lack of demand for space from retailers as well as funds with property builders to complete construction due to the economic slowdown. Although some see it as an early sign of a recovery for the retail segment of real estate, others believe multiplex owners will face fresh hurdles to expansion in the next two years as developers are still cautious in initiating new mall projects as retailers are not expanding so furiously.Rajeev Talwar, executive director at DLF said: “It will take another successful festive season and monsoon to assure developers to expand their retail business further, which is expected to happen in the next fiscal.”

Popularity: 3% [?]





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