Which term refers to any profit that is not disclosed by the agent in a transaction?

• A. Profit from Referral
• B. Surreptitious Gain
• C. Sub Rosa Commission
• D. Secret Profit

Answer: (D)

Undisclosed earnings from a transaction violate the agent’s duty to act in the principal’s best interests. When an agent makes a profit from the deal that the client is not told about, it’s described as a secret profit. This covers any additional compensation the agent receives related to the sale beyond the disclosed commission, such as hidden fees, kickbacks, or undisclosed referral or broker/third-party payments. Because the agent is supposed to be loyal and fully disclose all compensation, keeping such profits secret breaches fiduciary duties and can lead to disciplinary action, civil liability, or damages for the client. Other terms that convey secrecy exist, but secret profit is the clearest and most direct label for profit the agent gains without disclosure.