Agency
When a Missouri buyer's agent refers a client to a specific home inspector, lender, or title company for compensation, the agent must:
AKeep the arrangement private
BDisclose the referral fee arrangement to the client in writing✓ Correct
CGet MREC approval first
DDeny it if asked
Explanation
Missouri agents who receive compensation (kickbacks, referral fees) from service providers they recommend must disclose this to clients. RESPA also prohibits unearned kickbacks in federally related mortgage transactions.
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Key Terms to Know
Buyer's Agent
A real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
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