Question

Referral fees can be legally paid:

A) from a licensed broker to a consumer who referred a client
B) from one licensed agent to another licensed agent
C) from one licensed broker to another licensed broker
D) from one consumer to another consumer

Answer 1

Referral fees in real estate can only be legally paid between licensed agents or brokers, not to or from consumers.

Step-by-step explanation:

The question pertains to the legality of payment of referral fees in a real estate context. Referral fees can be legally paid under certain circumstances. Specifically, the correct answer is:

B) from one licensed agent to another licensed agent and C) from one licensed broker to another licensed broker. In most jurisdictions, real estate agents and brokers can pay referral fees to one another as part of their professional practice. However, it is usually not legal for licensed professionals to pay referral fees to unlicensed individuals, such as consumers, as it could involve a non-licensed person in real estate transactions, which is often against real estate commission rules and regulations.