Real Estate Globalization

The field of real estate used to be a local business. Real estate agents represented buyers and sellers who were generally in the same geographic location, or at least relatively close. Some might specialize in sales of buyers from out of the state that the property was located in, but mostly the agent's niche was his or her own local geographic area. Today, because of the internet and business globalization, this is not always the case. Realtors can even be hired to purchase property on behalf of someone who has never even seen the property themselves, from across the country or even another country entirely. This global market is a new development for the real estate industry and has some definite concerns that go with it.

Agents often work for real estate agencies, and are schooled in and governed by the rules of this agency as well as the local and state laws of the location of the properties they represent. They are not often familiar with other states' laws, much less the laws and rules of foreign countries. If the buyer or seller of a property lives in another legal system's jurisdiction, it can be difficult to ascertain which set of laws governs the business transaction taking place. Realtors must know the laws and regulations of the places they work as well as the places they are serving or hope to serve clients from.

International buyers can provide a tantalizing target for real estate agents who are up to the task of facilitating global transactions. In addition to the normal services that real estate agents offer, special services can appeal to international clients. These services include relocation quotes, area evaluations, and personal advising services like aid determining what inoculations are needed to move to another country and how to register the client's car upon arrival.

The International Real Property Foundation (IRPF) published a document called the "Management Guide for Real Estate Associations," to help people of different nations to work together peacefully. These guidelines are based on the Caux Round Table Business Principles of Ethics which were published in 1995.

Global real estate markets can result in fierce competition among agents, and a greater possibility for ethical and legal conflicts. The Real Estate Code of Ethics of each country must be taken into consideration, and fortunately many international markets have roughly the same code of ethics regarding market overlap and other ethical conflicts. However, conflicts still occur and it is necessary for agents and clients to act with respect and ethical consideration.