COLLECTIVE EFFORT REQUIRED- September 9, 2006. Times Property (Times of India)

The real estate code of ethics and practices of companies around the world are pitted against each other. If we were to be judged on our practices and acceptance of general code of ethics, we might as well wait it out with the Indian football team till World Cup 2014!.

This is fact and not fiction. Real estate practices in India have been of a mediocre standard in comparison, to our neighbouring South East Asian contemporaries and the rest of the world. But you cannot blame the broker alone. The practical working side of the Brokerage business has too many snags in comparison to the rest of the world.

In countries like United States, Canada, Australia and others, where the sale of property begins with the broker or an agent having complete exclusivity to market the property through their network, sellers and developers in India do not have the same procedure, maybe due to the quality of representation that they get. I choose not to delve into the reasons, them being wide and variant. However, this much is true, single new listing or property that enters the market is usually found listed by the owner with 5 to 6 brokers minimum. This is a unique way that we work in. Anywhere else, you would have one agent or broker for one property. That way the broker looks after the interest of the seller and the buyer is represented by his broker. By having multiple brokers working on a property, brokers are left out of the loop if a transaction has been completed. Due to which, you find listings on websites, brokers database of properties that have been sold or leased. Practically speaking they just cannot be updated. You cannot expect a broker or his team to call the seller every third day to check if the property is sold or not? This is big problem for brokers. Either way it goes against any sort of goodwill or reputation a brokerage firm is trying to establish.

Besides, there are a score of other practices that have fallen under scrutiny and have garnered a bad reputation for industry professionals. My colleague, Vinod Thakkar of Square Feet Property Consultants voiced a similar concern, “Adherence to generic codes of conduct is important for any business to survive and be respected, therefore.”

In addition to all of this, the tools used to conduct any transaction are very obsolete. Technology has taken over every little aspect of business networking. While some real estate companies have shown due diligence in keeping pace with the advancements, real estate firms internationally are finding new and more efficient ways of marketing their services. A collective effort to adapt better practise; beginning with the consumer (In a situation of: Buying, selling or renting
), broker and the government is required.

Providing an all round service is an important aspect of any relationship in the real estate business. Once again from the consumers perspective, listings or buying/renting inquiry should be exclusive with `A firm’ so that the property/inquiry can be represented to the optimum, without duplicating them in the market place through multiple brokers. For example, multiple brokers quoting different prices for the same property for sale on the internet could offset a prospective buyer. Similarly, if you have floated an inquiry to purchase an apartment in a particular project with five brokers in order to get the best price, the seller will start thinking that there are five buyers for the same property and may hold on to his price or get tempted to increase it.
 

In India, there aren’t many institutions that provide any sort of basic or preparatory course to let any individuals who are interested in the real estate business, beyond just a safe investment. The India Institute of Real Estate (IIRE) has been a pioneer undertaking – initiating a course in the Principles and Practices of Real Estate. Moreover, it has been conceived and established with the sole vision of giving the Indian real estate practitioners, national and international recognition with the help of education.

Andrea D’costa, (age: 20) who has shown active interest in the business and is the newest entrant at `NARAINS CORP’ adds; “Many fresh graduates have ignored a major asset (read: Real estate industry) in favour of the IT industry or the stock market. Real Estate is a complex business and it needs more than adequate attention from individuals and dedicated firms who understand that a home, or an office or a retail space is NOT a luxury.”

The industry has been attracting attention from investors both within the country and internationally as well. But it is essential that the interaction between investors and brokers be at a level of standard acceptable International practice, leaving no scope for any disappointment. IIRE is in the process of developing broker ratings nationally.

Vinod Thakkar further clarifies: “There are four primary areas of concern that need to be taken care of by brokers:–

Ethics need to be set up and followed so as to protect the interests of the client and the broker.

There should be complete transparency in any transaction – both on part of the Government and developers. Not to forget grace and honesty on part of the buyer and seller.

Business evolves continuously and learning is a ceaseless process. Brokers should constantly update themselves on the market happenings and the current buzz.

Amongst brokers – Co-operation is the key. Working collectively to assimilate information and thus, building up a strong and reliable network to provide world class services.”