North Dakota License Law
A North Dakota licensee who receives a gift from a service provider (inspector, lender) for referring clients must:
AAccept freely as it is a professional courtesy
BBe aware that undisclosed referral fees or kickbacks violate RESPA and license law✓ Correct
CDisclose only to their broker
DReport the gift to the IRS only
Explanation
RESPA prohibits kickbacks and unearned fees in federally related transactions. Undisclosed referral arrangements with service providers (accepting gifts or fees for referrals) violate both RESPA and North Dakota license law requirements for honest dealing.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
State-Specific Concepts
License Law
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