Jennifer is a Wisconsin licensed salesperson who wants to receive referral fees from an out-of-state mortgage company for sending clients their way. She does not hold a mortgage broker license. Under Wisconsin Statutes Chapter 452 and applicable Wisconsin law, which of the following is most accurate regarding Jennifer's ability to receive these referral fees?
Correct Answer
C) Jennifer may not accept referral fees from a mortgage company without a mortgage broker license, and such fees may violate RESPA and Wisconsin law
Accepting referral fees from a mortgage company in exchange for referring clients is problematic under both federal RESPA (which prohibits kickbacks for referrals of settlement services) and Wisconsin law. A Wisconsin real estate salesperson does not hold a mortgage broker license and cannot receive compensation for mortgage referrals. Such payments could constitute an illegal kickback under RESPA and a violation of Wisconsin Statutes Chapter 452's requirement that licensees not engage in conduct that constitutes an unlicensed activity or violates applicable law.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
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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