Robinson, Jon and Reed, Richard 2003, Property transactions : a note on ethics, in PRRES 2003 : Proceedings of the 9th Annual Pacific Rim Real Estate Society Conference, Pacific Rim Real Estate Society, Adelaide, S.Aust., pp. 1-9.
Some activities that are applied in the property market to facilitate transactions have the potential to lead to unethical behaviour. Two conditions required for a sale price to be acceptable as market value are that the transaction is at arm’s length and the parties to the transaction are knowledgeable and prudent. The well-known difficulties associated with access to market pricing information are exacerbated by several of these activities including dummy bidding at auctions, two-tier marketing and the provision of lease incentives. Added to these is a common requirement that any negotiation be commercial-in-confidence. The lack of information has the potential to distort the market and this has been well publicised in recent times particularly in the residential market. The definition of market value is visited and the nature of ethics in property transactions is outlined. Several examples of activities that could lead to unethical behaviour are described. It is concluded that unethical behaviour is hard to identify. Some recommendations are included for consideration and discussion.
Field of Research
150403 Real Estate and Valuation Services
Socio Economic Objective
900299 Property, Business Support Services and Trade not elsewhere classified
HERDC Research category
E2.1 Full written paper - non-refereed / Abstract reviewed