Question

Company A is offering a selling bonus of $1,000 to the selling agent. You sell the house, and at the closing, the broker for company A gives you a check for the $1000. Who, if anyone, has violated the law?

a. The selling agent
b. Company A
c. The buyer
d. No one has violated the law

Answer 1

The legality of the $1,000 bonus given by Company A to the selling agent depends on the disclosure and agreement within the real estate transaction. If properly disclosed and agreed upon, no law is likely violated; however, non-disclosure could constitute a legal issue.

The correct answer is B.

Step-by-step explanation:

Whether anyone has violated the law when a selling agent receives a $1,000 bonus directly from the broker of company A depends on the regulations governing real estate transactions in the jurisdiction where the sale takes place. Generally, real estate agents are required to operate within the bounds of ethical codes and legal regulations, which might include disclosing all compensation to all parties and ensuring that any bonus payment is made in accordance with industry standards and legal frameworks.

If the bonus was disclosed to all parties and was included in the contractual agreement between the seller, the buyer, and their agents, then likely no law has been violated. However, if the bonus wasn't disclosed, it could potentially be an issue of legal concern regarding kickbacks or other forms of non-transparent compensation that can violate real estate laws or ethical codes. Therefore, without additional context, it’s difficult to say definitively who, if anyone, has violated the law. The correct answer is B.