A WA sales representative is offered a personal gift by a developer for directing buyers to their project. What should the representative do?

Q: What is the correct answer to: A WA sales representative is offered a personal gift by a developer for directing buyers to their project. What should the representative do?

The correct answer is Decline the gift, or if accepted, disclose it in writing to their employing agent and to any affected clients. Option B is correct because a sales representative must either decline the gift or, if accepted, make full written disclosure to their employing agent and any affected clients. This prevents hidden conflicts of interest and maintains the transparency required by the Code of Conduct.

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

Third-party gifts and benefits in the real estate context can create subtle conflicts of interest that undermine the agent's objectivity. The WA Code of Conduct requires transparency in all dealings. The employing agent must be informed so they can assess whether the benefit affects the representative's advice to clients.

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

When offered a gift: either decline it, or accept and disclose in writing to your employing agent AND affected clients. No secret gifts. Think of the two Ds: Decline or Disclose. There is no third option for handling third-party gifts.

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

There is no value threshold for gift disclosure. Even small gifts connected to transactions must be disclosed.

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

A developer offers a WA sales representative a $200 gift card for each buyer they direct to the development. The representative must either decline the offer or accept it with full written disclosure to their employing principal agent and to each buyer they refer, ensuring clients know about the financial incentive.

Question

Ethics ComplianceWAMEDIUM

A WA sales representative is offered a personal gift by a developer for directing buyers to their project. What should the representative do?

Answer Options

A

Accept the gift as it is a normal business practice

B

Decline the gift, or if accepted, disclose it in writing to their employing agent and to any affected clients

C

Accept the gift but only if it is under $100

D

Accept the gift and report it to DMIRS