Final answer:
The $500 referral fee given by a broker in Arizona to a broker in California must be disclosed to all the parties involved to ensure transparency and adherence to real estate laws.
Step-by-step explanation:
When a broker in Arizona (AZ) is giving another broker in California (CA) a $500 referral fee for a buyer moving to AZ, this information must be disclosed to all parties involved in the transaction. This includes the buyer, the seller, and both the AZ and CA brokers' respective clients.
Disclosure of the referral fee is necessary to maintain transparency and adhere to real estate laws and ethical standards that prevent any conflicts of interest or the appearance of such. Real estate agents and brokers are obligated to act in their client's best interest, which includes disclosing any financial incentives that could influence their recommendations or decisions.