Managing Property Businesses - Essay Example

 Managing Property Businesses A quoted company is an organization whose shares are listed on the stock exchange. Members of the public have the opportunity to buy shares in his company. His investment gives the investor ownership of part of the company and they can do as they wish with these shares. In case the prices of the shares of a quoted company increase the investor can sell their shares and get their profits. On the other hand, they can hold onto the shares and they will receive dividends on n annual basis. Real estate investment trusts gives people the opportunity to invest in real estate without requiring them to have the large amount of money that is required to make such investments (Imperaile, 2006). This is by allowing the public an opportunity to buy shares in a company that invests in properties. The main objective of these companies is to increase their portfolio in regards to property. The value of shares fluctuates and they can drop to very low levels like during the recession, however, the value of property is more stable and this ensures extra security to the investment (Parker, 2011). Between the two options given, I would pick a real estate investment trust as the best option to invest in; the best choice in this category is the Schroder real Estate Investment Trust. There is an increased demand for houses in the United Kingdom and this can be directly linked to the improving economy. When the economy is performing well, there is an increase in the amounts of jobs and this means more people will require houses. Presently, the interest rates are also low and this makes mortgage rates cheaper. All these factors increase the demand for houses and therefore companies that invest in real estate are likely to profit from this move. Investment in Real estate investment is usually a risky business since the value of the business may go up or down. However, it is the companies involved to ensure that they protect the value and the investments that have been made are protected. Ethics defines the behavior and manners in which an individual or persons respond and apply the rationale in their actions. This also reflects on how people conduct themselves in a manner that does not interfere or infringe other people’s rights. In the eye of law, ethics apply from both lawyers and their clients during and after a court case and proceedings. Acts of a lawyer or the way a lawyer acts towards their clients can be linked to the determination of the outcome of a case in the justice system. This section of the paper focuses on how these ethical issues are portrayed by an investment company that deals with property (Bredeson, 2012). In any type of investments, there are a number of ethical considerations that must be portrayed by company in regards to their investment and interaction with their shareholders. This is significant in the sense that will determine the nature of treatment of the investors who believe and buy shares into the Real Estate Investment Trusts of the company (Imperiale, 2006). The role of lawyers, therefore, is to protect their clients from the abuse of law and misinterpretation. This requires them to act in a manner that reflects code of ethics as provided by the rule of law. In the juvenile system of justice, there are three aspects of ethical considerations that must be put into practice by lawyers during the determination of victims’ cases. These must uphold and protect the rights and freedom of the victims despite their charges or the nature of the crimes they committed. The three ethical issues that must be considered include clients with diminished capacity, scope of operation, and allocation of authority between lawyers and their clients. The real estate business has always been involved in various scandals. This is because there are limited people that protect the value of the consumers, most people who give opinions in regards to real estate are the agents and they usually us such opportunities to promote their own self-interests without caring about the needs of the consumers. Most people do not know how to valuate property and therefore have to rely on the valuation figures that are given by the company. In some cases, the figures are inflated so as to make the property appear more valuable than it actually is (Bredeson, 2012). The shareholders therefore pay a higher figure than would be legally acceptable and this is against ethical practices. The company can therefore ensure that the investors are always kept aware of the happenings of the industry so that they get true value for their investments and the operations of the company are always transparent. Real estate companies have always been involved in giving false promises in regards to the type of properties that they are dealing. This can be done by publicly stating prices that are much lower than the actual price. In reality, the customers will have to pay a much higher price for these types of property. The company has ensured that all the valuation reports it does on its properties are available to the general public to ensure transparency. Most individuals in the industry use open inspections method to take clients to view property that is on sale. This habit is dangerous to the home owners as it directly invades their personal privacy. The company should ensure that in future all the rights and the welfare of the home owners are guaranteed. Scope of operation In situations where clients suffer the case of diminished capacity, lawyers are expected to go be the decision of the clients with a reference to particular acts or provisions of the law. This will govern the proceedings and determinations of the cases before the court regarding the client. This reflects on the ethical consideration of the role that must be played by the lawyer for every customer whose capacity may not meet the standard provisions of the law. Allocation of authority This implies the use of position and power to see on what roles and responsibilities that lawyer and clients are eligible to perform during the hearing of the case. Mutual agreement must be reached to ensure that there is no conflict of authority and power. The code of ethics in relation to the investment industry are expected to be given highlights three key ethical conducts that must be applied to the customers (Parker, 2011). This will not only assist in correcting their mistakes but also influence their overall behavior in terms of future investments. These include Identification, Services, and considerations. However, there are drawbacks that are associated with these identified codes of correctional considerations that may limit implications in the rule of law. Most real estate companies profit from their customers in the form of needless fess. Prospective customers are made to pay certain amounts of money in the form of inspection costs and legal fees. It is only after completing these processes that the customer usually realizes that they cannot afford the home that they have been planning to purchase. The result of this is that the customers lose trust in the industry and has the potential of leading to greater losses.The housing industry is full of companies that are only interested in benefiting from the consumers without worrying about their future welfare (Trevino, 2011). They therefore make customers to buy expensive homes that they would otherwise not afford. Clients therefore get to pay high premiums and this makes them experience financial difficulty in future. The company should be able to ensure that customers benefit from their investments. It is therefore important to have ethical practices not only in the real estate sector but in all types of businesses. Not only does this increase consumer confidence but it present a potential of growth for the industry. Ethics are at the core of any business and they ensure that that all the stakeholders get value for their money. It is this factors that are part of Schroder Real Investment Company that make it an attractive investment. There are several disagreements that arise in the course of everyday business. This therefore requires the parties to find ways in which they can peacefully end such conflicts. Traditional means of dispute settlement such as going to court have been found not to be effective in solving trade disputes mostly because of the long process that it involves (Freeman, 2005). There are various ways by which this can be done and these include: mediation, collaborative law, arbitration and negotiation. Mediation involves the use of a mediator who helps in negotiation of an agreement between the two conflicting parties. Contribution in the mediation process usually comes from the two parties that are in dispute, the mediator has to be a neutral party and the main role of them is to direct this process. Negotiation is another alternative form of solving disputes; this involves only the two parties that have a disagreement. In such a case, the two will; organize for a meeting over which they will state their concerns and try to reach an amicable solution without input from any third party (Freeman, 2005). Arbitration is another alternative mode of conflict resolution that is very popular. It involves the two parties plus a third individual who is known as an arbitrator. The two conflicting parties meet before an arbitrator and each states their side of the dispute. When all the parties are through, the arbitrator goes through the evidence collected and then gives their verdict. The decision given by the arbitrator is final and binding and must be upheld by both the parties that are involved in the dispute. The last type of method used to solve disputes is collaborative law. In most cases, this is used to solve divorce disputes. All the parties in the dispute have to select an attorney and both of them meet with their respective attorneys. This matte is settled out of court and the duty of the lawyers is to ensure legal compliance (Dauer, 2000) .The parties in this type of process have to sign a contract that highlights the regulations to be followed during this type of process. The terms and conditions include: honesty in disclosure of documents, treating each other with respect, insulation of the children from these proceedings and there should be no mention by either party of going to court. There are various advantages of alternative decision making procedures that make them more preferable than other traditional forms of decision making. They are usually a low cost option as they involve no extra party or two at most. These processes usually take into account the emotional aspect behind various actions and both parties have to reach a solution that is beneficial to each of their needs (Dauer, 2000). The courts do not care about the personal feelings of the conflicting parties and are only concerned about the upholding of the law. The courts process is always a messy affair and one’s private matters are usually brought to the public limelight. The alternative forms of dispute resolution are a private affair and only involve the parties that are conflicting. They are able to keep their matters private and no one intrudes into their personal lives. These forms of decision making are therefore a more preferred method of solving disputes. Bibliography BREDESON, D. (2012). Applied business ethics.Mason, Ohio, South-Western/Cengage Learning. DAUER, E. A. (2000). Alternative dispute resolution: law and practice. Yonkers, N.Y., Juris Pub. FREEMAN, M. D. A. (2005). Alternative dispute resolution.New York, New York University Press. IMPERIALE, Richard. (2006). Getting Started in Real Estate Investment Trusts. Hoboken: John Wiley & Sons PARKER, D. (2011).Global real estate investment trusts: people, process and management. Chichester, West Sussex, Wiley-Blackwell. TREVIÑO, L. K.(2011). Managing business ethics: straight talk about how to do it right. New York, John Wiley. Read More