Ethics and compliance are fundamental to the success of any business, and the real estate sector is no exception. A culture of ethics and compliance can help ensure that real estate companies operate in a fair and transparent manner, protecting the interests of clients and the company.
Ethics in the real estate sector is important because it helps establish trust between clients and real estate companies. When clients trust a company, they are more likely to do business with it and recommend it to others. In addition, ethics in the real estate sector help to protect clients’ interests by ensuring that they receive a fair and transparent service.
Compliance is equally important in the real estate sector!
Real estate companies must comply with all applicable laws and regulations, including consumer protection laws, privacy laws and others. Compliance also helps protect the company from potential lawsuits and fines.
A culture of ethics and compliance starts with leadership!
Company leaders must set an ethical tone from the top, defining clear expectations for employees and providing adequate training in ethics and compliance. Leaders must also be role models of ethical behavior, demonstrating the company’s values in their own actions.
In addition, real estate companies should have clear ethics and compliance policies, which should be clearly communicated to all employees.
Real estate companies should also have whistleblowing channels!
In order for employees to be able to report breaches of ethics or compliance without fear of retaliation, legal opinions exist justifying the obligation to comply with law 93/2021, therefore not being excluded due to their possible small size (below 50 employees), since, due to their financial activity, they are involved in high risks of money laundering and terrorist financing, thus falling within the scope of Directive 2015/849 and interconnected by the acts of the European Union referred to in part I. B and II of the Annex to Directive (EU) 2019/1937 of the European Parliament and of the Council, which makes them included in the Whistleblowing law and therefore the obligation to comply with this law. Find out more in this legal opinion published in this Idealist article: (https://www.idealista.pt/news/imobiliario/empresas/2022/06/15/52724-imobiliarias-abrangidas-pela-nova-lei-whistleblowing-quase-em-vigor) or contact us .
In summary, a culture of ethics and compliance is essential to the success of any real estate company. It helps establish trust between clients and the company, protects the interests of clients and the company, and helps ensure that the company complies with all applicable laws and regulations. Remember, ethics and compliance are not just good business practices – they are essential to the long-term success of any company.
Published in 20231109