Humber/Ontario Real Estate Course 3 Exam Practice

Under what circumstances can a salesperson accept a finder's fee from a lender during a transaction?

1. If disclosed to the client and the fee is paid through the brokerage.

2. If it is permitted under the buyer representation agreement.

3. Only if it does not exceed $300.00.

4. Directly from the lender.

5. If it compensates for additional services provided.

6. When the lender pays the fee directly to the buyer's lawyer.

The correct answer is: If disclosed to the client and the fee is paid through the brokerage.

A salesperson can accept a finder's fee from a lender during a transaction if the fee is fully disclosed to the client and is paid through the brokerage. This requirement is essential as it ensures transparency in the transaction, making sure that the client is aware of any additional compensation the salesperson might receive from third parties. This disclosure helps maintain ethical standards and protects the interests of the client, as they must be informed of any financial arrangements that could influence the advice they receive. The fee being processed through the brokerage underscores the importance of compliance with the regulations governing real estate transactions, including the obligations that salespersons and their brokerages have toward clients. This upholds the integrity of the transaction and prevents any potential conflicts of interest or misunderstandings regarding compensation. Other options do not adequately cover the necessary disclosure or compliance aspects required by real estate regulations, making them insufficient for allowing a salesperson to receive a finder's fee seamlessly and ethically.