Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

Can a license holder gift a $50 gift card to an unlicensed person for referrals?

1. No, it's illegal

2. Yes, any value is acceptable

3. Yes, if it's redeemable for merchandise

4. No, gift cards are always considered valuable

The correct answer is: Yes, if it's redeemable for merchandise

The situation surrounding the gifting of items such as gift cards for referrals must be understood within the context of real estate laws and regulations. When it comes to compensating individuals for referrals, particularly those who are unlicensed, specific requirements and restrictions apply. The correct answer highlights that a gift card, when redeemable for merchandise, can indeed be given. This is because it is considered a nominal gesture of appreciation, rather than a direct compensation for services rendered in a transaction. The key aspect here is that the value should not be perceived as a payment for a referral, which could potentially violate licensing laws regarding how unlicensed individuals are compensated. The rationale for the allowance of a gift card, particularly if it is minimal in value, aligns with the idea that a gift should not be conditional upon the referral resulting in a transaction. However, it still highlights the importance of ensuring that such tokens of appreciation are within a nominal range so as not to suggest a quid pro quo arrangement, which could lead to legal issues. Other choices do not accurately reflect this context. Some suggest that it is outright illegal, while others propose that any value is acceptable, without considering legal guidelines about compensating referrals. Thus, option C maintains the distinction that gifting a card redeemable for