Under Cal. B&P Code §10177, the DRE may deny, suspend, or revoke a real estate license for specified conduct. Which of the following would NOT constitute grounds for disciplinary action under §10177?
Correct Answer
C) Accepting a referral fee from an escrow company without the principal's written consent
Referral fees between a real estate licensee and an escrow company are governed primarily by RESPA (12 U.S.C. §2607) and Cal. Financial Code §17000 et seq., not by Cal. B&P Code §10177 directly. While undisclosed compensation can implicate §10176(g) (secret compensation), a referral fee from an escrow company with proper disclosure and consent may be permissible under applicable law and does not fall squarely within the enumerated grounds of §10177. The other three options map directly to §10177 violations: §10177(e) covers false advertising, §10177(a) covers false statements on applications, and §10176(d) covers undisclosed dual compensation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Environmental hazards disclosure involves informing buyers about environmental contamination or hazards affecting or potentially affecting a property, including underground storage tanks, contaminated soil, hazardous waste, and proximity to Superfund sites.
Flood zone disclosure requires informing buyers whether a property is located in a designated flood zone as mapped by FEMA. Properties in high-risk flood zones may require mandatory flood insurance.
HOA disclosure requires informing buyers about the existence, rules, fees, financial health, and restrictions of a homeowners association governing the property. This information helps buyers understand their obligations before purchase.
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