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A real estate salesperson refers buyers to a particular lender knowing that the lender pays a fee for referrals which is true?

A. Ethical conduct
B. Legal advocacy
C. Fee-sharing protocol
D. Kickback arrangement.

User Purusartha
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1 Answer

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Final answer:

The correct answer to the student's question is D. Kickback arrangement, which refers to the unethical and often illegal practice of getting paid for referrals, violating RESPA regulations.

Step-by-step explanation:

The scenario described refers to a kickback arrangement. This is when a real estate salesperson is receiving a fee from a lender for referring buyers to them. While it might be a common practice, it is generally considered unethical and is illegal under the Real Estate Settlement Procedures Act (RESPA). Such actions can lead to conflicts of interest and a violation of the salesperson's duty to act in the best interests of their client.

User Saz
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