The Washington DOL is investigating a complaint against broker Denise. Which of the following actions by Denise would NOT constitute a ground for license suspension or revocation under RCW 18.85?
Correct Answer
C) Denise referred a client to a home inspector and received a $50 referral fee that she disclosed in writing to the client.
Under RCW 18.85 and RESPA principles applicable in Washington, a broker may receive a referral fee from a service provider provided the fee is fully disclosed to the client. When Denise disclosed the $50 referral fee in writing to the client, she satisfied the disclosure requirement. A properly disclosed referral fee is not a ground for disciplinary action under RCW 18.85.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
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