Bob, a real estate agent, refers buyers to Bug-B-Gone Termite Company, and the company pays him a referral fee for each inspection sold. Which of the following is correct:
A: This arrangement is permitted if the principals are fully informed and the cost of the inspection is not increased;
B: This arrangement is permitted if the principals are fully informed of the amount of the referral fee;
C: This arrangement is permitted if the referral fee does not exceed $50;
D: This arrangement is prohibited under the Real Estate Law.
Answer: D: This arrangement is prohibited under the Real Estate Law.
Business
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