Texas License Law
A Texas real estate agent who receives a referral fee from a home warranty company for each client referred must:
AKeep the fee if it is under $100
BDisclose the referral fee to their client✓ Correct
CReturn the fee to the client
DObtain TREC approval before accepting any referral fee
Explanation
Texas real estate agents must disclose any referral fees, rebates, or other compensation received from third parties (such as home warranty companies, inspectors, or title companies) to their client. Failure to disclose third-party compensation is a violation of TREC rules and the agent's duty of disclosure.
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