Risk Management in Real Estate Property Management Systems

Abstract

The purpose of this study is to analyze risk management in real estate property management systems. The study will seek to address two specific objectives: to establish risks involved in the adoption of electronic commerce in real estate transactions and explore best practices in risk control inherent in electronic transactions in real estate sector. The study entailed a systematic review of empirical literature in order to arrive at conclusions. It was revealed that the most prevalent risks in real estate property management systems include fraud, theft, security and confidentiality of information, information asymmetry, lack of trust, security of e-commerce infrastructure, existing and new laws among others. Some of the best risk management practices adopted include use of privacy enhancement technologies, adoption of account-based transactions, better website management, insurance and arbitration.