realestate

Declare Your Stake in a Business Entity

Disclose commissions, rebates, or profits earned from recommended vendors to clients.

P
roviding a comprehensive list of vendors can be a valuable service to clients, but it's essential to consider the potential implications of including companies with which you have a personal connection. According to Article 6 of the Code of Ethics, if you or your company might receive a financial benefit from making a recommendation for a product or service, you must disclose this information to the client.

    This includes situations where you provide a list of vendors and clients choose whom they'd like to use. Even if you don't consider it a recommendation, it could be perceived as one since you're offering the list. To avoid any potential issues, it's best to err on the side of caution and make the necessary disclosure.

    Article 6 states that REALTORS must disclose any financial benefits or fees they may receive as a direct result of recommending real estate products or services. Standard of Practice 6-1 also emphasizes the importance of disclosing any personal interest in companies you recommend to clients.

    While the Code of Ethics sets higher standards than those mandated by law, it's essential to note that in cases where the two conflict, the obligations of the law take precedence.

Business owner declares stake in company, signing documents at corporate headquarters.