Humber/Ontario Real Estate Course 2 Exam Practice

Which scenario correctly describes the handling of a referral payment between salespersons at different brokerages?

1. A cheque is issued directly to the salesperson

2. Referral payment is covered in the same transaction

3. Direct issue to the salesperson avoids inter-brokerage disputes

4. Referral payment goes to the company's headquarters

5. A brokerage issues the cheque to the referring salesperson’s employing brokerage

6. Referral processing is done by the board

The correct answer is: A brokerage issues the cheque to the referring salesperson’s employing brokerage

In the scenario where a referral payment is being handled between salespersons at different brokerages, the correct course of action is for a brokerage to issue the cheque to the referring salesperson's employing brokerage. This practice ensures transparency and proper documentation of the referral payment, avoiding any potential inter-brokerage disputes or confusion. Options A, B, C, and D do not accurately describe the typical handling of referral payments between salespersons at different brokerages. Option F is also incorrect, as referral processing is typically not done by the board but rather handled directly between the brokerages involved.