Under TREC rules, a license holder offers a prize or gift to anyone who refers a buyer or seller to the license holder. Under TREC rules, what advertising and legal considerations apply?
Correct Answer
C) The advertising of such programs must be truthful, and any prizes or gifts must comply with applicable laws; referral fees to unlicensed persons may raise legal issues
Under TREC rules, advertising of referral reward programs must be truthful and not misleading. Additionally, paying referral fees or valuable consideration to unlicensed persons for real estate referrals may violate TRELA. The license holder must ensure the program complies with all applicable laws.
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