Arizona License LawIntermediateArizona Exam

Under Arizona law, a real estate licensee who pays an unlicensed person a referral fee for directing business to the licensee is:

AActing within ADRE guidelines, which allow referral payments to unlicensed persons of up to $500 per referral when the payment is disclosed on the settlement statement
BViolating Arizona law, which prohibits licensees from paying referral fees or compensation to unlicensed persons for real estate activities requiring a licenseCorrect
CPermitted under Arizona law as long as the referral agreement is in writing and the unlicensed person performs no other licensed activity in the transaction
DActing within RESPA guidelines, which permit referral payments to unlicensed persons when both the referral source and the payment amount are disclosed to all parties

Why Violating Arizona law, which prohibits licensees from paying referral fees or compensation to unlicensed persons for real estate activities requiring a license Is Correct

Answer B: Violating Arizona law, which prohibits licensees from paying referral fees or compensation to unlicensed persons for real estate activities requiring a license

Arizona law prohibits the payment of referral fees or any real estate compensation to unlicensed persons for activities that require a real estate license. This includes steering clients to licensees in exchange for compensation.

Key Arizona License Law Terms in This Question

People Also Study

Math Concepts

State-Specific Concepts

DRE Regulation

Practice More Arizona Real Estate Questions

1,400+ questions covering all exam topics. Start free — no signup required.

Take the Free Arizona Quiz →