New York License Law

A New York broker who receives a referral fee from an out-of-state broker for sending a client must:

AReport the fee to the DOS
BEnsure the out-of-state broker is licensed in their own state and handle the fee in accordance with New York license law✓ Correct
CShare the fee with the client
DRefuse the fee as illegal under New York law

Explanation

New York brokers may pay and receive referral fees from licensed brokers in other states, provided the other broker is properly licensed in their home state. The arrangement must comply with New York license law regarding compensation.

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