Introduction

General Code of Conduct and Ethics for Registered Valuers, Appraisers and Estate Agents Professional is the person who having a job which needs special training and a high level of education. As a professional, he or she should possess a good moral and professional ethic. This is because professional is the person who owned the special knowledge in a particular field. Therefore, he or she is expected to be the most suitable person to govern the legal procedures in any transaction that related to his sector. Without ethic, a professional will sometimes losing their rational and making their own benefits due to his or her desires and needs. Ethic refers to the responsibilities and consequences of ones action or profession on the society. It usually concerns the moral issues that arise because of the specialist knowledge that professionals attain, and how the use of this knowledge should be governed when providing a service to the public. The same concept applies in real estate industry. Code of Conduct and Ethics for Registered Valuers, Appraisers and Estate Agent is one of the guidelines in guiding the professional in discharging his duties. The Essence of General Code of Conduct and Ethics The main purpose of the Code of Conduct and Ethics is to set out and enforce a clear and coherent framework of ethical principles and practices which promotes the duty of estate agents to discharge their obligations to the principal, employers, colleagues and others with due care and with regard to the wider public interest. Towards this end, the Code of Conduct and Ethics, sets out the standards of behaviour required of estate agents in their provision of professional services and business activities. Hence, the Code of Conduct and Ethics provide a positive statement of professional values and standard of conduct against which estate agents are accountable to the Board, to their principal, employers, employees, colleagues and the public at large. The Code of Conduct and Ethics should be viewed upon as a transparent system of conduct and values to which estate agents are expected to adhere to rather than a set of restrictions. This is in the spirit of the concept of self-regulation practised by the profession.

Every registered valuer or appraiser or estate agent are duty bound to render service to his client with absolute fidelity, and to practice his profession with devotion to the high ideals of integrity, honour and courtesy, loyalty to his country, and also to conduct business in the spirit of fairness and goodwill to his fellow professionals in the real estate industry. With respect to the ethic stated above, a foregone conclusion can be made that Trustworthy and Integrity are paramount important in any real estate matter. The existence of Section 21(1) and Section 22(c)(1) Valuers, Appraisers and Estate Agents Act 1981 which clarify that: No one shall unless he is a registered valuer, appraiser or estate agent and has been issued with an authority to practice under section 16 is the best evidence to prove that Trustworthy and Integrity are the elements being highlighted by the government in real estate sector. Also, buyers and sellers in the present market are highly advised by the estate experts to look for a real estate professional they can really rely. John Bearden, the president and CEO of GMAC Home Service is one of the experts. (GMAC entity, was selected to exclusively market the Trump International Hotel and Tower in Chicago) As we know, buying or selling property is a large investment. This is because this investment doesnt involved simple buying and selling, but it accompanying all financial and loan matters as well. Thus, people might need someone who is knowledgeable and trustworthy to handle this important and extremely complex process. The buyers and sellers do not rely on the professional who has interest on his clients at their bottom heart. For example, a seller does not trust the agent who gave bum advice. Many agents would like to tell clients I will let you know when the closing date is-. In fact, they were really telling the clients: I will let you know when my commission check is really. Once client realized that the agent is not helping them sincerely, they will definitely not fully rely on the particular agent anymore. Conversely, client might look for another estate professional. Therefore, this ethic might assist an estate agent in discharging his duties in more trustworthy, effective and professional way if they entirely obey. As a registered estate professional, always remember that clients only work with the agent that they feel secure.

Moreover, only a trustworthy estate professional can build a mutually beneficial and long term relationship with the clients. Hence, integrity of a valuer, appraiser or an estate agent is crucial in real estate sector. Reputation is the key. The president of Brause Realty, David Brause said before: You can do nothing worse than sully your name. This is another evidence to prove that a registered real estate professional should practice his profession with high devotion of integrity. This is to ensure that the professional obtain a high reputation and clients are fully trusted on them. Based on The Best Real Estate Advice I ever Received by Donald Trump, one of the best advice from the experts is make integrity your reputation. An estate professional should always possess integrity in their daily practice. Smart clients tend to choose their representative wisely based on their market knowledge and negotiation skills, but the most important element is the Integrity portfolio. An estate professional with high degree of honour could effortlessly satisfy his client and client is easily depends their propertys transaction on their representative. In addition, Ivanka M. Trump, a member of the Trump Organization development team has pointed out that a good track record is extremely important for a young professional in real estate business. How to create a good track record? She continued: True to your word and your dedication should be at its maximum. Your action should be flawlessly executed. Start to build your reputation from the very beginning. This has shown that the registered valuer, appraiser or even an estate agent should take their reputation seriously because it is one of the most essential elements they can exert control over. Another time, this ethical code of conduct is helpful in building up a lofty reputation. This is complementary to Malaysian Estate Agency Standard, where: An estate agent shall not conduct himself in such manner as to prejudice the professional status or the reputation of the profession. Again, this standard has shown that a registered valuer, appraiser or estate agent should possess moral ethic in practicing their profession. This is mainly due to reputation is the main factor in determining the successful of a registered estate professional. Remember, reputation builds from integrity and trustworthy.

Within the same standard, the Malaysian Estate Agency Standard emphasized that a registered agent should render service to his client with absolute fidelity, and to practice his profession with devotion to the high ideals of integrity, honour and courtesy, loyalty to his country, and also to conduct business in the spirit of fairness and goodwill to his fellow professionals in the real estate industry. Once more, it proven that the general code of conduct that stated above is vital in real estate field. Courtesy, is the polite behaviour that should be seen from a registered estate agent. Clients will not deal with the agent who is emotion and not well-mannered, however, only feel comfortable with the person who is courteous and respectful. Corresponding to the ethic stated, D. Kent Gale, chairman of the Daniel Gale Agency, Long Islands largest independent nonfranchised residential real estate broker told people in his interview that business is conducting with handshake. In short, focus on people is one of the fundamentals that required in practicing real estate activities. A successful estate professional should always concern about their clients needs and make the clients feel ease when they are in a deal. Meanwhile, shows respect to people and treated them well. D. Kent Gale had asked his father why he spent so much time with a fellow that came with knickers. He learned the key lesson when his father replied: Son, never judge someone with his appearance, people will surprise you. He later learned that this fellow was actually one of the most influential men on Long Island. Indeed, he owned a castle. Treat people with respect and people will treat you the same. This is the basic facts that even a child shall know. This ethic could assist estate professional succeed in his jobs and to be welcome by clients. Always bear Leonard Lauders advice (Chairman of Estee Lauder Companies) in mind, leave your emotion at home. In a more simple way, Be patient if one would like to long term competing in estates market. Nevertheless, an estate professional should complete themselves with loyalty, not only towards company or client but also the country. A loyal valuer, appraiser or estate agents will not doing any action that might defect his clients and nation. In such case, the respective professional should discharge their duties accordingly to the act and law.

In Malaysian Estate Agency Standard, estate agents are requested to be fully conversant with the Act and Rules, which must be abided by and adhered to all times. He shall also have a sound knowledge of all statutory provisions and procedures relation to real estate. Quote an example, a loyal valuer will not involve in any corruption that might attaint the clients interest and nation welfare. He should always valuate the property in proper, accurate and ethical manner. A valuer who failed to obey the general code of conduct and ethics which stated above, might has the higher chances to failed in their duties. This is basically due to ethic is the key to determine the characteristic of a professional and eventually affect business success and failure. Spirit of fairness is one of the important bare bones in ethical real estate practice. Spirit of fairness brings the sense that having the strong justice in the strength of mind. Fairness in real estate business could obtain a win-win situation and causing both parties happy ever after. Thomas J. Hutchison, the CEO of CNL Hotels and Resort has expressed his point of view that: The best real estate deal is the deal that you walk away from with the feeling that both parties achieved what they wanted. This statement has clarify that an estate agent should ensures that both principals are winners; all sides must truly feel that they prevailed so that the opportunity of obtaining positive feedback is higher and the respective agent will stand higher chance to get to work to the same principal for the next or upcoming estate business. Subsequently, the double win situation has evolved to triple win situation, long term business relationship built eventually. A registered valuer, appraiser and estate agent should have a possession of a spirit of goodwill to his fellow professionals in the same industry. An ethical registered estate professional should always show his kindness and friendliness to his colleague. As real estate transaction involving several professions due to the complexity of the buying and selling of estate property, thus an efficient and effective group work is dominant. Only a registered professional who seize moral ethic in their duties could work happily and coordinately with his fellowship.

Therefore, the ethic that stated above is tremendously useful in constructing an ethical estate professional in the industry. For instance, a registered professional who does not hold the character of goodwill to fellowship, consequently he may lose any business connection, interest or other affiliations that he owned. An unethical estate agent will not have good networking with contractor, sellers and buyers or other demanded professional. The estate agent is then unable to coordinate with other field nicely such as financial industry. Also, he is incapable to negotiate a good selling price for his client and finally resulting in the failure of discharging his duties. Likewise, According to Malaysian Estate Agency Standard, an estate agent shall never publicly criticize his fellow estate agents or express an opinion of a fellow estate agent's transaction. Once more, a registered agent is not permitted to destroy his fellowship. In a nutshell, in order to discharge duty in a more effective way, a valuer, appraiser or estate agent should possess the above ethic. This ethic could assist them to develop a good networking with clients and his fellowship.

It is a duty of a registered estate agent to protect the public against fraud, misrepresentation and unethical practices in respect to all real estate transactions. In accordance to section 24(1)(a) Valuers, Appraisers and Estate Agents Act 1981, subject to the provisions of this Part, if a valuer, appraiser or estate agent or a probationary valuer or probationary estate agent whose name has been placed in the Register or the Register of Probationary Valuers/Probationary Estate Agents, as the case may be (a) has been convicted of any offence involving fraud or dishonesty or moral turpitude (b) has been found to have obtained his registration or authority to practice under this Act by fraud or misrepresentation the Board may make an order (i) cancelling his registration under the appropriate Part of the appropriate Register; (ii) suspending his practice for a period not exceeding three years; (iii)admonishing him and recording such admonishment in the appropriate Register; (iv)admonishing him or imposing a fine not exceeding five thousand ringgit or both but without recording such admonishment or fine in the appropriate Register; or (v) imposing a fine not exceeding ten thousand ringgit and recording such fine in the appropriate Register and that he be suspended from practice until the fine is paid. Based on the above act, a registered estate agent is bound with the duty to avoid himself from fraud, misrepresentation and unethical practices. Meanwhile, he should also protect the public against all these dishonourable practices. A registered valuer, appraiser and estate agent is the person who has high knowledge and experienced in realty activities. They are expected to be ethical and do anything to protect our nation and public away from fraud, misrepresentation and unethical practices. Fraud is the crime of deceiving somebody in order to get money or goods illegally. Seeing that realty is an activity that involves large amount of compensation and money in the transaction, hence, the existence of fraud by the estate agent frequently happens and this has caused the public apprehension. As a registered professional, he should not practice corruption and should always protect the public welfare. Ultimately, this ethic is important in preventing the estate agent in their daily practice.

In real estate practice, misrepresentation is the act that gives information about something that is not true or complete so that other people have the wrong impression about them. Quote some examples of misrepresentation according to Malaysian Estate Agency Standard would include, but not limited to the following:

Where an estate agent describes a purchaser as a "cash purchaser" where he knows that the purchaser is dependent upon financing.

To state that the property would fetch a higher price to the prospective purchaser when in actual fact it is an untrue statement.

When the estate agent intentionally or by omission causes or permits a prospective party to believe a thing to be true, when in fact it is not, thereby inducing the prospective party to act upon such believe. Misrepresentation might lead to clients loss and disappointment in the real estate

transaction. This loss might engage a big amount of money and clients will not achieve what they prevailed to get. This is then causing a deep disappointment of clients towards the estate agent. As a result, they will not continue work with the respective agent, what is more, they might take legal action towards their representative. As for public, most of the individuals from the social system are not specialized in real estate industry, for that reason, they are frequently depending on registered estate agent. If the agents are unethical and being the bad guy who pocket part of the money for their own commission, thus public welfare will be affected and the nation income might decrease in the long run. In the present market, misrepresentation happens in anywhere at anytime. Quote an example, the amount that requested in the actual transaction and the amount that stated on To Let and To Sales sign boards lately are sometimes indifferent. This misrepresentation may cause the sellers facing inadequate compensation and taking legal action towards the agent. Meanwhile, the public also become one of the victims. Most of individuals might believe that the amount situated on sign board is the usual price and it could then lead the buyer asking for further reduction from the price printed. As an end result, disagreement and argument could eventually happen between buyers and sellers, otherwise, the surplus of the transaction has become agents pocket commission.

Undoubtedly, the ethic that positioned above is the key to lead the estate agents to conduct their duties in accordance to the law while preserve the public welfare. Registered estate who has fully obey the code of conduct above, will subsequently keep distance from causing fraud and misrepresentation. As what have been advised by Jeffrey Gural, chairman of Newmark & Company Real Estate: Always honour with your deals. Unethical practices include over-valuating property, flyboarding, false offers to force price up and etcetera. Taking false offers to force price up as example, if the estate agent knows in particular that someone is desperate for a particular property, they have been known to put in a false high offer. They then go back to the original interested party and tell them that this higher fake offer has been put in and if they have their heart set on this property they will have to be quick and increase their offer. This can go back and fourth several times, creating a fabricated auction and the property purchaser ends up paying thousands, or tens of thousands more for a property than they had to and the estate agent gains more commission. This unethical practice happened because the particular agent does not obey the code of conduct for registered valuers, appraisers and Estate Agents. The agent takes every step in the transaction to obtain profit. In the contrary, with the help of the ethic stated above, agents could discharge his duties in more reliable way. He will preventing himself from doing unethical practice and also protects everyone from these bad habits as well while prohibited the unethical activities. The current market is in a flood of fake purchasing. This is when the valuer undervalues his clients property, for their own personal gain. If the estate agent gets his clients to accept their assurances that this is the best price they will get, the agent then quickly purchases thier property through a "friend". They then sell it on for its true market value, making a huge profit. Moreover, flyboarding also occurs simultaneously. This is a marketing ploy that is unscrupulous, illegal and infuriates local residents. Estate agents go around putting their for sale boards up outside properties that are not even for sale. Buyers can then be fooled into thinking an agent is the hottest in the area because of the proliferation of their for sale boards. Believe it or not, there has also been Board Wars breaking out in some areas of the country, where agents start snitching each others boards and then putting up their own false boards.

In such cases, the public are straightforwardly confuse with the prices and the availability of properties in the market. This may causing the properties economy fluctuates unevenly. Consequently, the nation income and public welfare will in bad performance. In order to defeat the unethical problems, once again, code of conduct and ethic that stated above is centrally important in property practice. As a professional in real estate industry, a registered valuer, appraiser and estate agent has the responsibility to defend the public from fraud, misrepresentation and unethical practices. Remember, integrity is vital in property industry. However, it does not mean that integrity is limited for selected client but also every single individual in the market. For a registered estate agent, public interest should come before the commission. Conclusion In a nutshell, code of conduct and ethic is crucial in every profession. Only with the guidance of these codes of ethic, a registered professional is able to discharge his duties in an effective and efficient way. Nevertheless, the client and public welfare are guaranteed if the codes of ethic, Malaysian Estate Agency and Valuers, Appraisers and Estate Agent Act 1981 have been fully obeyed. As a professional in real estate property, always remember the advice from Donald Trump: Make integrity your reputation. Reputation is key of business successful and failure.

References 1. Malaysian Estate Agency Standard 2. Valuers, Appraisers and Estate Agents Act 1981 3. TRUMP: The Best Real Estate Advice I Ever Received by Donald Trump 4. www.hartanah2u.com 5. http://www.independent.co.uk/money/estate-agents-are-the-bad-guys-again1254619.html 6. http://academyestateagents.co.uk/index.php?option=com_content&task=view&id=30&It emid=45 7. http://www.propertyfactor.co.za/article_detail.php?article_id=9 8. http://www.sg-house.com/classifieds/experience-sharing/971748-complaints-againstunethical-housing-agents-on-the-rise.html 9. http://www.digitalflats.co.uk/articles/legal/estateagentbbc/