Agency (alternative)
In Maryland, a listing agent who earns additional compensation from a buyer's lender for referring the buyer's business without disclosure is:
AEntitled to the compensation as long as it comes from a third party
BViolating RESPA's anti-kickback provisions and possibly Maryland law✓ Correct
CComplying with normal referral fee practices
DRequired to split the fee with the seller
Explanation
RESPA (Real Estate Settlement Procedures Act) prohibits unearned fees and kickbacks between settlement service providers. Undisclosed referral arrangements with lenders violate RESPA.
Related Maryland Agency (alternative) Questions
- Under Maryland law, an agent's fiduciary duty of 'care' requires the agent to:
- In Maryland, which of the following could create an implied dual agency?
- In Maryland, which of the following would most clearly constitute a material fact requiring disclosure by an agent?
- In Maryland, a property management company that manages both a condo association's common elements and sells individual units within the same building may have a:
- A Maryland licensee who provides services to both the buyer and seller in the same transaction as a 'transaction broker' (where Maryland allows it) does NOT owe either party:
- In Maryland, a buyer who tours a model home in a new subdivision is typically being assisted by:
- In Maryland, a buyer's agent who knows their buyer is willing to pay full price should:
- Under Maryland's dual agency rules, a dual agent must obtain informed consent from:
Practice More Maryland Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Maryland Quiz →