Finance
Under RESPA (Real Estate Settlement Procedures Act), a 'kickback' or referral fee paid between settlement service providers is:
APermitted if disclosed to the buyer
BProhibited unless a bona fide service is provided✓ Correct
CAlways allowed between licensed real estate professionals
DOnly allowed in commercial transactions
Explanation
RESPA prohibits unearned fees and kickbacks among settlement service providers. However, referral fees are permissible only when they are for actual, bona fide services rendered and are properly disclosed.
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