Agency (alternative)
Under Maryland law, an agent who receives a gift from a third party (such as a title company) for referring a client must:
AAccept the gift since it does not affect the client
BDisclose the gift to the principal as it may create a conflict of interest✓ Correct
CReturn the gift to the title company
DDonate the gift to charity
Explanation
Agents must disclose any compensation, gifts, or benefits received from third parties in connection with a transaction to the principal, as these may create conflicts of interest or violate RESPA's anti-kickback provisions.
Related Maryland Agency (alternative) Questions
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