Which of the following scenarios is an example of an unacceptable conflict of interest for a real estate associate under RECA Rules?

Question: Which of the following scenarios is an example of an unacceptable conflict of interest for a real estate associate under RECA Rules?

Answer options: ✅ An associate accepting a referral fee from a mortgage broker without disclosing it to their client.

• An associate receiving a modest gift from a grateful client after a successful transaction.
• An associate representing two different buyers interest in the same property, with full disclosure and consent.
• An associate marketing a property for a client where their own child is interested in purchasing it, with full disclosure.

Correct answer: An associate accepting a referral fee from a mortgage broker without disclosing it to their client.

Explanation: RECA Rules Section 54(1) stipulates that a real estate professional must not accept remuneration, whether directly or indirectly, from a person other than their client, related to the provision of real estate services to their client, unless the amount and source are disclosed to the client. An undisclosed referral fee is an unacceptable conflict.