Question

Justin, a real estate salesperson, would like to offer his colleague a referral fee for referring him a new client. before offering the referral fee, however, justin obtained informed consent from the client. why must justin obtain consent from the client...?

Answer 1

Justin obtained informed consent from the client in order to follow the full disclosure policy. In this policy, referral fee can only be given with the informed consent of the client (this is the party being referred by the referrer). The informed consent should be in writing in order to avoid complications in the future.