A Queensland real estate agent becomes aware that their salesperson has been accepting secret commissions from a building inspector for referrals. The agent should:
Correct Answer
B) Stop the practice, tell affected clients and report it to the Office of Fair Trading
Taking undisclosed payments for referrals is a secret commission, an offence under the Criminal Code (Qld), and it breaches the duty to disclose referral benefits to buyers under the Property Occupations Act 2014. A principal who fails to supervise staff or ensure they comply with the Act is exposed to disciplinary action. The principal should stop the practice at once, tell the affected clients and report the conduct to the Office of Fair Trading.
Why This Is the Correct Answer
An undisclosed referral payment is a secret commission. The licensee must ensure staff are supervised and comply with the law, so the correct response is to end the arrangement, tell the clients who were affected and report it to the regulator rather than wait or benefit from it.
Why the Other Options Are Wrong
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A licensed estate agent in Victoria becomes aware that an agent's representative employed at their agency has been accepting secret commissions from a developer in exchange for steering buyers toward the developer's properties. Under the Estate Agents Act 1980, what is the licensed agent's obligation and potential liability?
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