Pennsylvania License Law
Under Pennsylvania law, it is illegal for a licensee to pay an unlicensed person a referral fee for sending real estate clients. This rule is intended to:
AProtect the income of licensed professionals
BEnsure that only qualified, licensed professionals receive compensation for real estate activities✓ Correct
CLimit competition in the real estate market
DComply with federal mortgage lending laws
Explanation
Pennsylvania law prohibits paying referral fees or compensation to unlicensed individuals for referring real estate clients. This ensures that only licensed professionals who have met education, examination, and character requirements receive compensation for real estate activities.
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