Finance
Under Virginia law, a licensee who refers clients to a specific title company in which they have an ownership interest must:
ANever make such referrals
BDisclose the ownership interest to clients and comply with RESPA's affiliated business arrangement rules✓ Correct
CGet VREB prior approval
DOnly refer when the title company is the cheapest option
Explanation
RESPA allows affiliated business arrangements (when an agent has an ownership interest in a title company) if the relationship is fully disclosed, the client is not required to use the affiliated company, and no referral fees are paid beyond legitimate returns.
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