New York License Law
In New York, a broker may pay a portion of a commission to an out-of-state real estate licensee for a referral ONLY if:
AThe out-of-state licensee is also licensed in New York
BThe out-of-state licensee holds a valid real estate license in their home state and did not perform any licensed activities in New York✓ Correct
CThe payment is less than 25% of the total commission
DThe DOS pre-approves the referral fee arrangement
Explanation
New York brokers may pay referral fees to out-of-state licensees provided: (1) the out-of-state licensee holds a valid license in their home state; and (2) the out-of-state licensee performed no licensed real estate activities in New York. Paying a fee to an unlicensed person, or to a licensee who performed NY brokerage activities without a NY license, is prohibited.
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