Real Estate Math

A Virginia agent receives a referral fee of $1,500 for sending a client to a lender. This fee is:

APermissible if disclosed to the client
BProhibited by RESPA as a kickback for referrals to settlement service providers✓ Correct
CRequired to be paid to VREB
DPermissible only if under $2,000

Explanation

RESPA Section 8 prohibits kickbacks, fee-splitting, and referral fees between settlement service providers (agents, lenders, title companies). A referral fee from a lender to a real estate agent is prohibited under RESPA.

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