Alabama License LawIntermediateAlabama Exam

In Alabama, a real estate licensee who pays or receives a referral fee must ensure:

AThe referral fee is at least $500

BThe referral is made only to licensed real estate professionalsCorrect

CAREC approves each referral

DThe fee is paid directly to the client, across most transactions

Why The referral is made only to licensed real estate professionals Is Correct

Answer B: The referral is made only to licensed real estate professionals

Under RESPA and Alabama license law, referral fees between real estate professionals are permissible, but fees may not be paid to unlicensed individuals for referring real estate business.

Key Alabama License Law Terms in This Question

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

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Key Terms to Know

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

Closing Costs

Fees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.

State-Specific Concepts

AREC RegulationLicense Law

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