Humber/Ontario Real Estate Course 2 Exam Practice

If a salesperson receives a referral fee from a mortgage company, what is their obligation regarding disclosure?

1. The referral fee must be disclosed only if it exceeds $100.

2. The salesperson must disclose the referral fee to the client regardless of the amount.

3. The referral fee needs to be disclosed only if required by the mortgage company.

4. The duty of care dictates that the fee must be disclosed.

5. Disclosure is optional but recommended by REBBA.

The correct answer is: The salesperson must disclose the referral fee to the client regardless of the amount.

The correct answer is B. The salesperson must disclose the referral fee to the client regardless of the amount. In Ontario, real estate professionals are required to disclose any referral fees they receive to their clients, regardless of the amount. This transparency helps ensure that clients are fully informed about any potential conflicts of interest that may arise from the referral relationship. By disclosing the referral fee, the salesperson maintains transparency and acts in the best interest of their client by providing all relevant information.