Agency
An agent in Texas who represents a buyer but receives a referral fee from the seller's contractor for recommending the contractor for post-closing work must:
AKeep the referral fee confidential from the buyer
BDisclose the referral fee arrangement to the buyer client✓ Correct
CReport the fee to TREC monthly
DSplit the fee with the sponsoring broker
Explanation
An agent receiving any benefit from a third party related to the transaction must disclose this to their client. Failure to disclose creates a conflict of interest and may violate the agent's fiduciary duty to the client.
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