Pacific Northwest Realty, a brokerage licensed in Washington State, wants to refer clients buying property in Idaho to a local Idaho agent and receive a referral fee. Under Idaho law, which of the following statements is most accurate?
Correct Answer
B) Pacific Northwest Realty may receive the referral fee only if it is licensed in Idaho or the referral fee is paid through a licensed Idaho broker to an out-of-state broker
Under Idaho Code § 54-2003 and IREC regulations, compensation for real estate brokerage activities in Idaho must flow through a licensed Idaho broker. An out-of-state brokerage may receive a referral fee if the payment is made from a licensed Idaho broker to the out-of-state broker (who holds a valid license in their home state). The out-of-state broker does not need an Idaho license to receive a referral fee structured this way, but the transaction must be properly channeled through an Idaho-licensed broker.
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Related Topics & Key Terms
Key Terms:
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FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.
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