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Pa Rela Brokerage RulesBrokerage_operationsMEDIUM

Under RELA, a Pennsylvania salesperson, Rita, is offered a $2,000 gift card by a home inspector for referring clients to the inspector's business. May Rita accept this gift under RELA?

Correct Answer

D) No, accepting anything of value for referrals without disclosure constitutes receiving undisclosed compensation, which violates RELA

Under RELA (63 P.S. §455.604), a licensee may not accept compensation or anything of value for referrals without proper disclosure and without the compensation flowing through the employing broker. A $2,000 gift card constitutes compensation that must be disclosed and handled through the broker.

Answer Options
A
Yes, gift cards are not considered compensation under RELA
B
Yes, because home inspectors are not regulated by the SREC
C
No, but only if the gift card value exceeds $5,000
D
No, accepting anything of value for referrals without disclosure constitutes receiving undisclosed compensation, which violates RELA

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Related Topics & Key Terms

Key Terms:

referral_compensationgift_carddisclosurebroker_requirementbrokerage_operationsRELA
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