Colorado License Law
Under Colorado license law, a broker may pay a referral fee to:
AA. Any person who sends them a client
BB. Only another licensed real estate broker or as permitted by Colorado and federal law (not to unlicensed persons for activities requiring a license)✓ Correct
CC. Any person, as long as the referral is documented
DD. Only their employing broker
Explanation
Under Colorado law and RESPA, referral fees and finder's fees for real estate services may only be paid to licensed real estate professionals. Paying referral fees to unlicensed persons for activities that require a license (such as finding buyers or sellers) violates Colorado license law. Referral fees between licensed brokers are permissible.
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