Standard of Care issues involve professionals and entities that have the duty of care and can include concepts such as the expected behavior of a reasonable man, custom and practice in a certain professional specialty, and standards that may be set forth in contractual agreements, laws and regulations.
Professional Standards, Best Practices and New Trends may be defined as follows:
Professional Standards may be defined as the consensus view as to basic standards that must be met in order for expert services to be provided in a professional manner.
Best Practices are asserted by one or more entities or individuals to reach a higher standard of performance than standards of practice but there may not yet be general acceptance of such asserted practices.
New Trends are emerging proposals for a change in standards or best practices which in time may or may not become new professional standards or practices.
Specialty Sectors for Application of Real Estate Standard of Care Concept and Comparison with Actual Behavior:
- Acquisition and Disposition
- Asset Management
- Real Estate and Mortgage Brokerage
- Construction Lending
- Construction Management
- Corporate Real Estate
- Development Process
- Real Estate Dispute Resolution
- Real Estate Finance
- Partial and Fractional Interests
- Real Estate Investment Banking
- Joint Ventures
- Loan Underwriting
- Pension Fund Real Estate
- Property Management
- Public and Private Real Estate Firm Financial Reporting
- Real Estate Credit
- Real Estate Firm/Client Relations
- Restructurings and Workouts
- Tenancies in Common (TIC)
- Transactional Due Diligence