New Mexico License Law
Under NMREC rules, a real estate licensee who receives a referral fee from a home inspector must:
AReport it on their tax return only
BDisclose the referral arrangement to their client✓ Correct
CSplit it with their qualifying broker
DRefuse all referral fees from inspectors
Explanation
Licensees must disclose any referral fees, kickbacks, or compensation received from third-party service providers (inspectors, lenders, title companies) to their client, as this is a material conflict of interest.
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