A Queensland real estate agent becomes aware that their salesperson has been accepting secret commissions from a building inspector for referrals. The agent should:

Q: What is the correct answer to: A Queensland real estate agent becomes aware that their salesperson has been accepting secret commissions from a building inspector for referrals. The agent should:

The correct answer is Take immediate action to stop the practice, report it to the OFT, and ensure all affected clients are informed. Secret commissions are illegal under Queensland and Commonwealth law. The supervising agent must immediately stop the practice, report it to OFT, and inform all affected clients. The agent has a supervisory duty and failure to act makes them complicit in the unlawful conduct.

Q: What background knowledge is needed for this Ethics Compliance question?

Secret commissions are payments made to agents or their staff that are not disclosed to the client. They are prohibited under the Criminal Code (Qld) and the Commonwealth Criminal Code Act 1995. Penalties include fines and imprisonment.

Q: What is a good way to remember the answer to this Ethics Compliance question?

Secret commission discovered? Three immediate steps: STOP the practice, REPORT to OFT, INFORM affected clients. No delay. Discovered illegal conduct by staff? Stop-Report-Inform. Immediate action, no waiting for audits or reviews.

Q: What exam tip applies to this Ethics Compliance question?

Supervising agents are liable for staff misconduct they knew about or should have known about — immediate action is required.

Q: How does this Ethics Compliance concept apply in Australian real estate practice?

A principal agent discovers their salesperson receives $200 from a building inspector for every referral. The agent immediately stops the practice, reports to OFT, and writes to every client who was referred to that inspector disclosing the undisclosed arrangement.

Question

Ethics ComplianceQLDMEDIUM

A Queensland real estate agent becomes aware that their salesperson has been accepting secret commissions from a building inspector for referrals. The agent should:

Answer Options

A

Ignore it as it is the salesperson's personal matter

B

Take immediate action to stop the practice, report it to the OFT, and ensure all affected clients are informed

C

Share in the commissions as the supervising agent

D

Wait until the next audit to address it