Washington License Law
A Washington buyer's agent is receiving a referral fee from a mortgage lender for sending the buyer to that lender. If the buyer is unaware of this referral fee, the agent has:
AEarned a legitimate referral income that does not require disclosure
BViolated RESPA and their fiduciary duty to disclose all compensation received in connection with the transaction✓ Correct
COnly violated Washington state law, not federal law
DCommitted a minor infraction requiring only a disclosure after closing
Explanation
Receiving undisclosed referral fees for directing clients to settlement service providers violates RESPA Section 8 (federal law) and the agent's fiduciary duty to disclose all compensation related to the transaction. Full disclosure and client consent are required.
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