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UBC Real Estate Practice Exam

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If a real estate agent earns a personal payoff from a deal that is not disclosed, this is known as?
Correct Answer:
Secret Profit
Explanation:
In real estate ethics, licensees owe fiduciary duties to their clients, including loyalty and full disclosure. Accepting a personal payoff from a deal without telling the client breaches that duty because it creates a hidden benefit for the agent at the client’s expense. This situation is described as a secret profit—the term captures the idea of an undisclosed, unjustified gain tied to the transaction. It’s considered unethical and typically prohibited, and can lead to disciplinary action. Other phrases like a normal personal commission, a non-disclosed gain, or a hidden dividend aren’t the standard terms used to describe this breach. The established term that conveys both the improper nature and the lack of disclosure is secret profit.

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