Kansas License Law
What is a 'referral fee' and when is it permissible in Kansas real estate?
AAny fee paid to any person for a referral is legal
BA referral fee may be paid to another licensed real estate professional for referring a client; paying referral fees to unlicensed persons is prohibited✓ Correct
CReferral fees are always prohibited in Kansas
DReferral fees require KREC approval before payment
Explanation
Kansas license law prohibits paying referral fees or compensation to unlicensed persons. Referral fees may be paid to licensed real estate professionals in Kansas and other states, following RESPA rules for residential transactions.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
EasementA non-possessory right to use another person's land for a specific purpose.
State-Specific Concepts
License Law
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