PSI Virginia Real Estate Practice Exam

Who is allowed to accept referral fees for real estate services?

1. Only brokers

2. All active licensees

3. Only salespersons

4. Any unlicensed individual

The correct answer is: All active licensees

In the realm of real estate services, referral fees are typically compensated for directing business to another agent or broker. Active licensees, which include both brokers and salespersons, are legally permitted to accept referral fees. This is vital in maintaining professionalism and ethical standards in real estate transactions. Active licensees have completed the required education and maintained the necessary licensing through the state, allowing them to engage in real estate activities, including accepting referral fees. The regulation often restricts referral fees to those individuals who hold an active license to ensure that only qualified professionals who understand the legal obligations and standards of the industry are involved in the transaction. This not only upholds the integrity of the profession but also protects consumers by ensuring they are connected with knowledgeable agents. In contrast, only brokers or salespersons or unlicensed individuals lack the necessary credentials to engage in receiving such fees legally, creating a foundation for regulated and responsible business practices in the real estate sector.