Is it permissible for a builder to solicit a contract by promising a bonus contingent on the purchaser displaying their dwelling to a third person?

Prepare for the Residential Builder's Salesperson Exam. Use our materials with flashcards and multiple choice questions, each with hints and explanations. Get exam-ready today!

The premise of this question revolves around ethical practices in real estate and the legality of certain solicitation tactics. When a builder offers a bonus contingent on a purchaser displaying their dwelling to a third party, it enters into a potentially unethical territory, as it may be perceived as coercive or misleading. Such practices can compromise the integrity of the sales process and may violate regulations intended to ensure transparency and fairness in real estate transactions.

Especially in the real estate industry, salespersons and builders are often bound by codes of conduct that prohibit incentivizing purchases through questionable means, ensuring that buyers are making informed decisions without undue influence. Offering a bonus for showcasing a property to others could be seen as encouraging a kind of referral method that relies on incentives rather than genuine recommendation based on the property’s merits.

This reflects a broader industry standard that aims to protect consumers and maintain fair practices, reinforcing why the approach of promising a bonus under such circumstances is not just discouraged but often outright prohibited in real estate dealings.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy