Is it permissible for a real estate licensee to pay a referral fee to an unlicensed person for securing potential 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!

A real estate licensee is not allowed to pay a referral fee to an unlicensed person for securing potential buyers because this practice is considered a violation of Georgia's real estate license laws. The laws are designed to protect the interests of consumers and ensure that only qualified individuals engage in activities that require a real estate license, such as providing referrals for prospective buyers.

By restricting the payment of referral fees to licensed individuals, these regulations help maintain professionalism and accountability in real estate transactions. Unlicensed individuals lack the necessary training and oversight that comes with licensure, which could lead to potential issues or misrepresentation in the real estate process. Therefore, only licensed real estate professionals are permitted to receive compensation for acting in a capacity that involves real estate services, including referrals, ensuring that consumers are protected and that all parties involved are held to the standards of the industry.

The other options suggest scenarios that do not align with the established legal framework governing real estate practices in Georgia. For instance, referral fees not exceeding a certain amount or payment to unlicensed individuals could lead to complications and do not reflect the strict regulations outlined by the licensing authorities.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy