Pennsylvania License Law
A Pennsylvania licensee receives a referral from an out-of-state agent for a Pennsylvania client. How should the referral fee be handled?
AReferral fees from out-of-state agents are prohibited by RELRA
BThe referral fee may be paid to the out-of-state licensee's broker, and the Pennsylvania broker's portion goes to the Pennsylvania licensee through their broker✓ Correct
CThe Pennsylvania licensee may pay the referral fee directly to the out-of-state agent
DOut-of-state referral fees must be reported to PREC before payment
Explanation
Referral fees may be paid between cooperating brokers (including out-of-state brokers) for referring clients. The Pennsylvania licensee receives their commission through their Pennsylvania broker; the referring out-of-state broker receives their referral fee from the Pennsylvania broker.
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