Utah License Law
When a Utah real estate agent refers a client to a home inspector, mortgage lender, or attorney, and receives a referral fee for that referral, they must:
AKeep the referral fee confidential to avoid embarrassment
BDisclose the referral fee to their client✓ Correct
CSplit the fee with the Division of Real Estate
DReport it on their tax return only
Explanation
If an agent receives compensation for referring a client to a service provider, they must disclose this to the client. RESPA also prohibits kickbacks for referrals of settlement services.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
State-Specific Concepts
License Law
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