Maria, a real estate broker, is approached by a developer who plans to build a new condominium complex in Ottawa. The developer offers Maria an exclusive listing for the sales of all units, along with a personal incentive of $50,000 for advice on unit pricing and marketing strategies, separate from the standard commission. What is Maria's ethical obligation concerning this personal incentive?

Question: Maria, a real estate broker, is approached by a developer who plans to build a new condominium complex in Ottawa. The developer offers Maria an exclusive listing for the sales of all units, along with a personal incentive of $50,000 for advice on unit pricing and marketing strategies, separate from the standard commission. What is Maria's ethical obligation concerning this personal incentive?

Answer options:

• Maria must disclose the personal incentive to the developer's lawyer but not to potential buyers. ✅ Maria is required to disclose the existence and nature of the personal incentive to all prospective buyers, even though it is not a direct commission on their purchase.
• Maria can accept the incentive as long as her advice is genuinely beneficial to the developer and does not compromise the interests of future buyers.
• Maria should decline the incentive to avoid any perception of conflict of interest, as it is separate from her standard commission.

Correct answer: Maria is required to disclose the existence and nature of the personal incentive to all prospective buyers, even though it is not a direct commission on their purchase.

Explanation: Rule 16(2) of the Code of Ethics under TRESA requires a registrant to disclose in writing any direct or indirect interest they have in a trade in real estate, including any remuneration or benefit they receive that is not standard commission, to all parties to the trade.