Question

The Code of Ethics requires the disclosure whenever a commission agreement could impact whether an offer to buy is accepted by the seller. In any commission reduction situation, the listing Salesperson must disclose the details and the terms of the commission reduction agreement in writing to all buyers who have made a written offer.

a) True
b) False

Answer 1

The statement is true; real estate ethics require disclosure in writing of any commission reduction to all buyers who have made a written offer.

Step-by-step explanation:

The Code of Ethics in the real estate industry does indeed require disclosure of any commission arrangements that might affect a seller's decision to accept an offer.

When there is a commission reduction, the listing Salesperson is obligated to inform all buyers who have submitted a written offer about the details and terms of the commission reduction agreement in writing. The statement given in the question is true.