New York License Law

In New York, paying a referral fee or compensation to an unlicensed individual for procuring a real estate client is:

APermitted if the amount is under $500
BPermitted with written consent from both parties
CProhibited by license law✓ Correct
DPermitted only for commercial transactions

Explanation

New York license law prohibits licensed real estate brokers and salespersons from paying referral fees or other compensation to unlicensed individuals for procuring clients or transactions.

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