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Practice Of Real Estate DisclosuresAdvertising_and_ethicsMEDIUM

Under California DRE regulations, which of the following activities does NOT constitute an ethical violation for a licensed real estate broker?

Correct Answer

A) Sharing commission split information with a cooperating broker through an MLS listing

Sharing commission split information with cooperating brokers through an MLS listing is a standard, permitted, and expected practice. MLS platforms are specifically designed to facilitate commission cooperation between brokers, and such disclosure is consistent with the broker's duty to market the property effectively. This activity raises no ethical concerns under DRE regulations or the NAR Code of Ethics.

Answer Options
A
Sharing commission split information with a cooperating broker through an MLS listing
B
Accepting compensation from both buyer and seller in the same transaction without written consent from both parties
C
Advertising a property at a price lower than the seller's authorized listing price to generate buyer interest
D
Failing to disclose to a buyer a material defect the broker discovered during a property walkthrough

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Related Topics & Key Terms

Key Terms:

ethicsMLScommission_sharingviolationsBP_Code_10176

Related Concepts

A material defect is a condition that significantly affects the value, desirability, or safety of a property and that would likely influence a reasonable buyer's decision to purchase or the price they would pay.

Megan's Law requires states to make information about registered sex offenders available to the public. Some states require real estate agents to inform buyers about the availability of sex offender registries.

Mold disclosure involves informing buyers about the presence of mold or conditions that are conducive to mold growth in a property. While no federal mold disclosure law exists, many states require disclosure of known mold issues.

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