Illinois License Law
Under Illinois law, a licensee who pays an unlicensed person a referral fee for sending a client is:
APermitted, provided the referral fee does not exceed $500
BPermitted if the unlicensed person is a former licensee
CProhibited and subject to disciplinary action✓ Correct
DPermitted only in commercial transactions
Explanation
Illinois law prohibits licensees from paying referral fees or compensation to unlicensed individuals for referring real estate clients. Doing so is a violation subject to IDFPR disciplinary action including license suspension or revocation.
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