PSI Virginia Real Estate Practice Exam

Who is permitted to pay referral fees according to the regulations?

1. Salespersons only

2. Brokers only

3. Both salespersons and brokers

4. Only licensed real estate agents

The correct answer is: Brokers only

In the context of Virginia real estate regulations, referral fees can only be paid by licensed brokers. This rule is established to ensure that funds related to real estate transactions are handled in a professional and ethical manner. Brokers, as the licensed entities responsible for the oversight of real estate practices, are allowed to manage and disburse referral fees, maintaining compliance with state laws and regulations. Salespersons, on the other hand, work under the affiliation of a broker and typically cannot operate independently concerning the payment of referral fees. This restriction ensures that all financial transactions are tracked and processed through the brokerage, which is accountable for those funds. While some might think that only licensed agents can pay referral fees, which includes both brokers and salespersons, the distinction lies in the fact that it is broker authorization that ultimately governs these payments. Thus, understanding who is authorized to financially interact in this way is crucial for maintaining compliance and professionalism in real estate transactions.