Real Estate Ethics - A Two Way Street

The subject of ethics and ethical behavior is a sensitive one. In real estate, with such large transactions being involved, there needs to be the expectation that everyone involved is acting in an ethical manner.

Realtors are bound by a strict Code of Ethics and risk significant penalties should they fail to adhere to this code. These penalties can include monetary damages and the loss of their license. That's not to say that everyone working as a licensed realtor is 100% ethical. That would be an unrealistic assumption. However, there are guidelines in place to prevent unethical behavior and to punish those that are found to have breached that code.

Clients, however, have no written code that they must adhere to. As a realtor, I have to assume that everyone I work with is being completely honest and straightforward. In 99 out of 100 cases, that is true. Every now and then, though, a situation will arise where information is provided that is patently false. Or, in other scenarios, a client will omit certain facts that ultimately have a bearing on the transaction. One result is that the transaction doesn't close and money and time is wasted.

Billionaire Purchases a Hawaiian Island

But for a few people, getting their own island is not a dream, but rather a reality. This is the case of Larry Ellison, CEO and co-founder of information technology giant Oracle, who just purchased Lana'i, the sixth largest of the Hawaiian islands.

Lana'i is an island that has a history of private ownership, however its nickname is the "Pineapple Isle", which it got after it was purchased in 1922 by Dole Foods. The company then turned the Island into the world's biggest pineapple plantation. The Island has since been owned by Castle and Cook, a residential company based in Hawaii that has owned almost all of the territory of Lana'i for the last 5 decades. Now, Ellison owns 98% of the Island, with the other 2% belonging to the State of Hawaii.

Many can't help but wonder whether purchasing a private Island of 141 square miles could be a wasteful endeavor and just a sign of greed. It should be noted that there are other billionaires who own land that totals over 141 square miles, even if it's not in the form of an island like in Ellison's case.

California Real Estate Recovery 2012

The National Association of Homebuilders just released a report listing US housing markets showing measurable and sustained improvement from their respective market troughs in housing permits, employment and house prices for at least six consecutive months. This latest report includes 73 metro areas that held their position on the list from last month as well as 11 new metro areas.

It's speculated that the modest improvement in this improving market index indicates that individual housing market are regaining their footing despite some recent reports of weakening in the broader economy.

Now, for an inside take on this report, which I estimate the vast majority of news outlets won't mention.

Think about it, or better yet do a search on Google for the National Association of Homebuilders Improving Market Index. I would bet the majority of the articles that you come across will only mention the fact that the index has improved and not go into detail by looking at the individual metro areas delineated in this report. It's somewhat sad that the majority of news, or what is called news, is just a republishing of press releases.