Frequently Asked Questions - Gifts
- May I give gifts to clients and customers who do business with me?
- May I pay a fee or give a gift to a person who refers a prospect to me?
Q. May I give gifts to clients and customers who do business with me?
A. Generally speaking, licensees may give gifts to clients and customers provided (1) they do not give such gifts to persons for performing the services of a real estate licensee; (2) a licensee's broker expressly approves giving the gift; (3) if the licensee gives the gift to a customer, the licensee's client knows of and approves of the giving of the gift; and (4) the gifts are consistent with the advertising provisions of the license law 43-40-25 (a)(2) & (17) and Rule 502-1-.09. However, there are other federal and state laws which regulate advertising and/or promotions (for example, the State's Fair Business Practices Act). Therefore, if your broker is not certain whether a particular gift promotion meets the requirements of the law, your broker may need to consult legal counsel.
Q. May I pay a fee or give a gift to a person who refers a prospect to me?
A. No, unless that person is a real estate licensee. Referral of prospects is the act of a real estate licensee, and a licensee may pay compensation to a person who performs the acts of a licensee only if such person is licensed. See License Law 43-40-25(a )( 17).