Final answer:
The practice of paying a non-licensed individual for referrals in the real estate business is typically illegal, and thus, Tom needs a license to refer prospective buyers, making option C ('No, Tom needs a license to refer prospective buyers.') the likely correct response.
Step-by-step explanation:
The legality of the practice in question depends on specific real estate licensing laws, which can vary by jurisdiction. However, in general, it is often required that any person who receives a fee for services related to real estate transactions must hold a valid real estate license. Therefore, the practice described likely violates real estate licensing laws. Sally is a real estate broker engaging in a business relationship with Tom, who is being paid a stipend for providing names of potential buyers. Tom does not hold a real estate license and is receiving compensation for participating in a referral system, which is generally not permitted for non-licensed individuals in the real estate industry. Additionally, there could be privacy concerns regarding Tom giving out the names of motel guests without their consent.