Washington License Law

A Washington real estate licensee who receives a referral fee from an out-of-state broker for referring a client must:

AReport the fee to the DOL on a quarterly basis
BEnsure the referral fee is paid through the licensee's affiliated firm and properly documented✓ Correct
CDecline the fee because interstate referral fees are prohibited
DAccept the fee personally and report it on their tax return without firm involvement

Explanation

Referral fees paid to Washington licensees must flow through the licensee's affiliated firm (brokerage). Licensees cannot receive compensation for real estate activities directly — all compensation must be paid to and through the licensed firm, which then pays the licensee according to their compensation agreement.

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