Illinois License Law
Under Illinois law, can a real estate licensee pay a referral fee to an unlicensed person?
AYes, as long as it is less than $500
BYes, if the referral is for a buyer only, not a seller
CNo, compensation for real estate activities may only be paid to licensed individuals✓ Correct
DYes, as long as it is disclosed in writing
Explanation
Under the Illinois Real Estate License Act, compensation (including referral fees) for real estate activities may only be paid to licensed individuals. Paying referral fees to unlicensed persons is a violation of the license law. This protects the public by ensuring that only licensed, regulated individuals are compensated for real estate services.
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