Agency

In Iowa, can a broker pay a referral fee to an unlicensed individual who refers a client?

AYes, if the referral is in writing
BYes, if under $500
CNo, referral fees may only be paid to licensed individuals✓ Correct
DYes, if the individual is a family member of a licensee

Explanation

Iowa license law prohibits paying referral fees or commissions to unlicensed individuals for referring real estate clients. Compensation for real estate activities may only be paid to licensed persons.

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