Agent Diane works for a Maryland brokerage and is approached by a friend who wants to pay her a referral fee for sending a buyer client to an out-of-state agent. Diane is not involved in the transaction beyond the referral. Under Maryland law, which of the following is correct regarding this referral fee arrangement?
Correct Answer
D) Diane may receive a referral fee, but only if the payment is made through her supervising broker and the broker approves the arrangement.
Under Md. Code Ann., Bus. Occ. & Prof. § 17-402 and MREC regulations, a salesperson may not receive compensation directly from anyone other than their supervising broker. Any referral fee or commission earned by a salesperson must be paid to and through the supervising broker, who then compensates the salesperson. The broker must be aware of and approve the referral arrangement.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
In Wyoming real estate practice, a first-time salesperson applicant completes coursework. What should the licensee remember?
A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
A responsible broker in Wyoming asks about a nonresident applicant provides home-state evidence. Which answer follows Wyoming law?
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