Connecticut License Law

A Connecticut broker's salesperson is also a licensed mortgage originator. The salesperson refers their real estate client to a specific mortgage lender for a fee. This arrangement is:

APermitted if the fee is small
BSubject to RESPA disclosure requirements and Connecticut license law; the arrangement may be a violation unless it meets RESPA's affiliated business arrangement requirements✓ Correct
CCompletely permitted if both licenses are active
DProhibited only if the lender is out of state

Explanation

RESPA Section 8 generally prohibits fee-splitting between settlement service providers, including real estate agents and mortgage lenders. A referral fee from a lender to an agent violates RESPA unless the parties meet the Affiliated Business Arrangement requirements with full disclosure and free choice given to consumers.

Related Connecticut Connecticut License Law Questions

Practice More Connecticut Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Connecticut Quiz →