A real estate brokerage has a policy requiring all its registrants to solely use the brokerage's designated home inspector, offering a small referral fee to the registrant for each inspection. This arrangement is not disclosed to the clients. Which ethical requirement is being overlooked?

Question: A real estate brokerage has a policy requiring all its registrants to solely use the brokerage's designated home inspector, offering a small referral fee to the registrant for each inspection. This arrangement is not disclosed to the clients. Which ethical requirement is being overlooked?

Answer options: ✅ Disclosure of any benefit, compensation, or commission received from a third party.

• The obligation to avoid dual representation.
• The duty to ensure fair competition among service providers.
• The requirement to maintain proper records.

Correct answer: Disclosure of any benefit, compensation, or commission received from a third party.

Explanation: Section 7 of the Code of Ethics (O. Reg. 580/05, now TRESA) mandates that a registrant shall disclose in writing to the client or customer any direct or indirect interest, benefit, or commission they expect to receive from a third party in connection with a trade. The referral fee, even if small, must be disclosed.