Can a licensee pay a fee or give a gift to an unlicensed person referring prospective buyers?

Prepare for the Georgia Real Estate License Test. Use flashcards and multiple choice questions to enhance your understanding of the laws and rules. Get exam-ready with detailed explanations and hints!

In Georgia, real estate law stipulates that only licensed individuals may receive compensation for services related to real estate transactions. This includes any form of payment or referral fee for directing clients or prospective buyers to a real estate professional. Since an unlicensed person is not authorized to conduct real estate business, paying them a fee or giving them a gift for referrals goes against the regulations set forth by the Georgia Real Estate Commission.

This provision exists to maintain the integrity of the profession, ensuring that all parties involved in real estate transactions are knowledgeable and adhere to legal standards. It protects the consumers and guarantees that any advice or services rendered are from qualified individuals.

While the other options suggest various conditions under which payments to unlicensed persons might be permissible, none align with the strict regulations that prohibit such practices entirely. This reinforces the principle that compensation for referral services must only be made to licensed agents, thereby safeguarding the interests of all stakeholders in real estate transactions.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy