Minnesota License Law

A Minnesota real estate licensee receives a referral fee from a mortgage lender for sending clients to them. Under RESPA, this arrangement is:

APermitted if disclosed to the client
BProhibited unless a bona fide service is performed✓ Correct
CAlways permitted between licensed professionals
DPermitted if under $100

Explanation

RESPA (Real Estate Settlement Procedures Act) prohibits kickbacks and unearned referral fees between settlement service providers. A referral fee from a lender is prohibited unless the licensee actually performs a bona fide service. Minnesota law also prohibits undisclosed compensation arrangements. Violation can result in license discipline.

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