South Dakota License Law

A South Dakota real estate licensee who receives a gift from a vendor they referred a client to (without client disclosure) has:

AReceived a legal business gift with no disclosure required
BViolated RESPA and potentially their fiduciary duty if the gift was for the referral✓ Correct
CComplied with SDREC rules as long as the gift is under $50
DOnly violated ethics, not law

Explanation

Receiving compensation (including gifts) for referrals from settlement service providers without client disclosure violates RESPA and the licensee's fiduciary duty of disclosure.

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