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Property MarketingSAHARD

Under SA regulations, what disclosure must an agent make if they receive a rebate or commission from a third-party service provider recommended to a client (e.g., a photographer or staging company)?

Correct Answer

B) The agent must disclose any rebate or benefit from the provider to the client in writing.

Under the Land Agents Act 1994 and general fiduciary principles, an agent must disclose in writing any financial benefit received from third-party service providers they recommend, ensuring transparency with their client.

Answer Options
A
Disclosure is needed only when a single referral fee exceeds a set dollar threshold.
B
The agent must disclose any rebate or benefit from the provider to the client in writing.
C
Recording the rebate in the agency's books for the annual audit satisfies the obligation.
D
The agent may keep the rebate undisclosed if the provider charges the client a market price.

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Related Topics & Key Terms

Key Terms:

third-party rebatewritten disclosurereferral fee transparency
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