To win listings, an agent offers a local café owner a gift card for every customer the café persuades to list with the agent. What does Schedule 1 say about this?
Correct Answer
D) It is prohibited as a benefit offered to induce third persons to engage the agent.
Rule 14 of Schedule 1 says an agent must not offer a person a gift, favour or benefit, monetary or otherwise, to induce a third person to engage the agent's services. Paying the café owner to steer customers into listing is exactly that.
Why This Is the Correct Answer
Offering the café owner a benefit to bring in listings is an inducement aimed at third persons, which rule 14 prohibits.
Why the Other Options Are Wrong
Background Knowledge for Ethics Compliance
Exam Tip for Ethics Compliance
Common Mistakes to Avoid on Ethics Compliance Questions
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To win a listing on her preferred terms, an agent tells the owner that NSW law makes a 90-day exclusive period compulsory in every sale listing. It does not. What has she done?
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