Question

A licensee may not pay finder's fees or give any valuable consideration to an unlicensed person or entity for referring a prospect in a real estate transaction except token gifts;

a. Of $25 or less
b. Of $50 or less
c. Of $100 or less
d. Of $150 or less

Answer 1

Finder's fees to unlicensed individuals in real estate require adherence to local laws; specific permissible values for these fees or gifts are not provided.

Step-by-step explanation:

The question pertains to the regulations concerning the payment of finder's fees or valuable consideration to unlicensed individuals in a real estate transaction.

In the context of the real estate industry, paying such fees or giving consideration for referrals may be strictly regulated or even prohibited to prevent unethical practices. Typically, the law may allow for token gifts of nominal value but restricts more substantial payments to avoid the appearance of impropriety or influence.

However, any specific value like $25, $50, $100, or $150 is not indicated within the reference information provided and likely varies by jurisdiction. Therefore, it is essential for a licensee to be aware of the local real estate laws and regulations concerning these transactions.