Humber/Ontario Real Estate Course 4 Exam Practice

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What should a listing salesperson do if a buyer customer gives a $500 gift certificate?

Should accept this gift graciously, no questions asked and no disclosures made.
Should not accept this monetary gift.
Has an obligation to inform the seller client of this gift, but not the employing brokerage.
Has an obligation to disclose this fact to the seller client and ensure that payment flows through the employing brokerage.
Should only inform the brokerage of the gift.
Can personally accept it without informing anyone.

The correct answer is: Has an obligation to disclose this fact to the seller client and ensure that payment flows through the employing brokerage.

When a listing salesperson receives a $500 gift certificate from a buyer customer, the most appropriate course of action is to disclose this gift to the seller client and ensure that payment flows through the employing brokerage. This is important for several reasons: 1. **Transparency and Ethics**: Real estate transactions are governed by strict ethical standards that prioritize transparency. Disclosing gifts or bonuses ensures that all parties are aware of any influences that might affect the transaction. This helps maintain an ethical standard in dealings and promotes trust among all parties involved. 2. **Regulatory Compliance**: Many real estate boards and regulatory bodies have specific rules regarding the acceptance of gifts and commissions. By ensuring that any monetary gifts are processed through the brokerage, the salesperson complies with these regulations, preventing any potential legal or ethical issues. 3. **Protecting Interests**: By informing the seller client and involving the brokerage, the salesperson protects both the buyer's and seller's interests. It safeguards against misunderstandings or feelings of favoritism that might arise if one party perceives that the other has received an undisclosed benefit. Thus, the correct answer emphasizes the necessity of maintaining ethical standards, ensuring regulatory compliance, and protecting the interests of all parties involved in a real estate transaction.