Humber/Ontario Real Estate Course 3 Exam Practice

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Humber/Ontario Real Estate Course 3 Exam. Study with challenging questions and detailed explanations to enhance your understanding. Get ready to excel in your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Why must a salesperson declare a referral fee received from a mortgage company?

Only if exceeding $100
To maintain transparency with the client
If required by the mortgage company’s policies
Due to duty of care in fiduciary responsibilities

The correct answer is: To maintain transparency with the client

The requirement for a salesperson to declare a referral fee received from a mortgage company primarily revolves around maintaining transparency with the client. Transparency is a fundamental principle in the real estate industry, ensuring that clients are fully aware of any financial arrangements that could influence the advice or recommendations provided. By disclosing referral fees, salespersons foster trust and demonstrate integrity in their professional relationships. Maintaining transparency helps clients make informed decisions and reinforces the ethical standards upheld in the real estate profession. This practice not only aligns with legal obligations but also supports the reputation of the industry as a whole, promoting fairness and accountability. While monetary thresholds, company policies, or fiduciary responsibilities might play a role in various aspects of real estate transactions, the emphasis on honesty and transparency to the client is critical and serves as the primary justification for declaring referral fees.