Question

Regal, an out-of-state licensee who is friends with cari, a licensee with perfectly at home, referred one of her buyer friends to cari. cari plans to pay regal a referral fee. which statement about this fee is true?

a) It's illegal for agung to pay an out-of-state licensee a referral fee.
b) Referral fees have no disclosure requirements.
c) agung must pay the fee directly to regal since Harriet is an out-of-state licensee.
d) agung must pay the referral fee through her brokerage firm to regal brokerage firm."

Answer 1

Cari must pay the referral fee through her brokerage, Perfectly at Home, to the out-of-state licensee Regal's brokerage firm, following the legal and regulatory requirements of handling real estate referral fees.

Step-by-step explanation:

It is not illegal to pay an out-of-state licensee a referral fee, and Cari must pay the referral fee through her brokerage firm to Regal's brokerage firm.Referral fees are common in the real estate industry, especially when agents collaborate across state lines. The legality and requirements for these fees can vary by state, but it is typically not illegal to pay referral fees to an out-of-state licensee. However, these payments usually must be done in a specific manner to remain compliant with real estate laws and regulations.

Most states require that real estate commissions and referral fees are paid between the brokerages and not directly between individual agents. This means that Cari should initiate the referral fee payment through her brokerage, Perfectly at Home, to Regal's brokerage firm. The proper handling of referral fees ensures transparency and adherence to the licensing laws. Moreover, there may be disclosure requirements to the respective clients to maintain ethical standards. To avoid any breaches of professional conduct or licensing laws, the real estate professionals involved should carefully follow their state's regulations regarding referral fees.