Florida License Law

A Florida sales associate receives a referral fee from a mortgage company for directing buyers to that company. This practice is:

ALegal if disclosed in writing to the buyer
BProhibited by RESPA as an illegal kickback✓ Correct
CLegal if the fee is under $500
DLegal if the broker approves the arrangement

Explanation

RESPA Section 8 prohibits referral fees and kickbacks between settlement service providers (including real estate brokers and mortgage companies) that are not for actual services rendered. This prohibition applies regardless of disclosure or broker approval.

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