Final answer:
Legally, a broker can be paid a kickback only after performing a service, having a proper license, and ensuring full disclosure to all involved parties. The legality of kickbacks depends on strict adherence to laws such as RESPA.
Step-by-step explanation:
For a broker to legally be paid a kickback or rebate, he or she must have performed a service, held an appropriate license, and all parties must be informed of the payment. It is crucial to understand that in many jurisdictions, the payment of kickbacks as a business practice can be deemed illegal, especially in real estate and financial services, unless all the aforementioned criteria are strictly met and the appropriate disclosures are made. Regulations such as the Real Estate Settlement Procedures Act (RESPA) in the United States specifically prohibit kickbacks in real estate transactions unless they comply with the law's requirements. Therefore, when dealing with the payment of kickbacks, it's extremely important not only to be licensed and provide a service but also to ensure that such payments are transparent and lawful.