Under Queensland law, a real estate agent who receives a gift or benefit from a third party in connection with a client's transaction must:

Q: What is the correct answer to: Under Queensland law, a real estate agent who receives a gift or benefit from a third party in connection with a client's transaction must:

The correct answer is Disclose it to their client. An agent must disclose any gift, benefit, or commission received from a third party in connection with their client's transaction. This requirement ensures transparency and allows the client to assess whether the agent's recommendations are influenced by personal financial incentives.

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

Third-party benefits commonly arise from referral arrangements with mortgage brokers, solicitors, building inspectors, and removalists. These benefits can create conflicts of interest if the agent recommends providers based on personal gain rather than client benefit.

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

Received a gift or benefit from a third party? TELL your CLIENT. They need to know about any potential conflict of interest. Any benefit from a third party connected to a transaction? Disclose to the client immediately. No exceptions.

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

Third-party benefits must be disclosed to the CLIENT, not just the REIQ or OFT. The client is the affected party.

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

An agent receives a $500 referral fee from a mortgage broker every time they refer a buyer. The agent must disclose this arrangement to each buyer before recommending the broker, so the buyer can decide whether the recommendation is genuinely in their interest.

Question

Ethics ComplianceQLDEASY

Under Queensland law, a real estate agent who receives a gift or benefit from a third party in connection with a client's transaction must:

Answer Options

A

Keep it confidential to avoid embarrassment

B

Disclose it to their client

C

Donate it to charity

D

Report it to the REIQ only