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Real Estate Ethical Issue

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Ethical Principles and Real Estate Issues

John D. McKay

Ethics 316


Terrance Davis

Ethical Principles and Real Estate Issues

In order practice Real Estate in the state of California a license is required. To sit for the exam there is a requirement to take three college level courses and a passing score on the state exam. When completed the individual has the opportunity to buy and sell property for another and enter the world of Real Estate sales. Real Estate sales can be very lucrative. Unfortunately, a real estate agents reputation is usually grouped together with used car salesmen and lawyers. The sales career seems to attract the unscrupulous where ethical boundaries are crossed all the time. According to Waller (n,d), As with most careers involving sales, real estate professionals encounter ethically compromising situations so frequently that they may be unaware of the situation or the implications of their actions. Many offer advice to their clients trying to be helpful, but are unaware of the problems they may create (para. 2). Since Real Estate Agents make their money based on performance and number of sales it predictable that agents make self serving decisions. The world of the Real Estate Agent can be analyzed using ethical principles to address issues, and answering the following questions:

What role do external social pressures have in influencing organizational ethics?

Most of us live by the golden rule of, “do unto others as you would have them to do for you.” The Real Estate Agent has a fiduciary duty to their client but this duty is often breached. Taking a listing knowing nothing about the area or taking an over priced listing just to have a listing can be...

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