A sales agent whose license is on inactive status refers a friend to an active broker who then represents the friend in a real estate transaction. May the inactive agent receive a referral fee for this referral?
Correct Answer
A) Yes, an inactive license holder may receive a referral fee as long as they do not participate in negotiations or the transaction itself
Under TREC rules, a license holder on inactive status may receive a referral fee provided they do not actively participate in the real estate transaction — such as negotiating, showing property, or providing services requiring an active license. Simply referring a person to an active broker and receiving a fee for that referral does not constitute the practice of real estate brokerage and is permissible for inactive license holders.
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