RES exam question on Marketing & Advertising: Two salespersons from different agencies co-broke a deal, and a third party introduced…
Case study: Two salespersons from different agencies co-broke a deal, and a third party introduced the buyer. Which is/are correct? (i) Co-broking between salespersons of different agencies is permitted and common (ii) Commission-sharing arrangements should be clear and agreed between the co-broking parties (iii) A salesperson must not pay referral fees to an unlicensed third party in a manner that breaches CEA rules (iv) A salesperson may collect commission from a client without any estate agency agreement or disclosure
- A(i), (ii) and (iii) only
- B(i) and (ii) only
- CAll of the above
- D(ii), (iii) and (iv) only
Show answer & explanation
Answer
A. (i), (ii) and (iii) only
Explanation
Issue: What rules govern co-broking, commission-sharing and referral fees? Rule: Co-broking across agencies is permitted; commission-sharing should be clearly agreed; and salespersons must not pay referral fees in breach of CEA rules or collect commission without a proper estate agency agreement/disclosure. Application: Co-broking allowed (i); clear commission-sharing (ii); no improper referral fees (iii). Conclusion: (i), (ii) and (iii) are correct.
Why the other options are wrong
- The trap is (iv): commission requires a proper agreement and disclosure — it cannot be collected with neither.
Study the concept behind this question: Property Marketing: Listings & Advertising Rules (Singapore)
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