Under WA law, what disclosure must a real estate agent make if they are receiving a commission or benefit from a third party in connection with a property transaction?

Q: What is the correct answer to: Under WA law, what disclosure must a real estate agent make if they are receiving a commission or benefit from a third party in connection with a property transaction?

The correct answer is The agent must disclose any commission, benefit, or rebate received from a third party to their client in writing. Option B is correct because WA agents must disclose any commission, benefit, or rebate received from third parties to their client in writing. This includes referral fees from mortgage brokers, removalists, or other service providers connected to the transaction.

Q: What background knowledge is needed for this Consumer Protection question?

Third-party benefit disclosure prevents agents from recommending service providers based on personal financial gain rather than client interest. The written disclosure must identify the nature and amount of the benefit, allowing the client to make informed decisions about the recommended services.

Q: What is a good way to remember the answer to this Consumer Protection question?

Any benefit from a third party must be disclosed to the client in writing. No threshold, no waiting to be asked — proactive written disclosure. If an agent receives anything from a third party connected to the transaction, they must tell their client in writing.

Q: What exam tip applies to this Consumer Protection question?

The disclosure must be in WRITING and to the CLIENT — not just verbal and not just to the regulator.

Q: How does this Consumer Protection concept apply in Australian real estate practice?

A WA agent refers a buyer to a specific mortgage broker and receives a $500 referral fee. The agent must disclose this fee in writing to their client before or at the time of the referral, allowing the client to decide whether to use the recommended broker.

Question

Consumer ProtectionWAMEDIUM

Under WA law, what disclosure must a real estate agent make if they are receiving a commission or benefit from a third party in connection with a property transaction?

Answer Options

A

No disclosure is required if the benefit is under $500

B

The agent must disclose any commission, benefit, or rebate received from a third party to their client in writing

C

Disclosure is only required if specifically asked by the client

D

The agent only needs to report it to DMIRS annually