A broker strongly recommends to her sales staff that they use the services of her in-house escrow company and an affiliated mortgage lender, for which they will receive extra compensation. With regard to disclosing this arrangement to clients, the salespersons are only required to:
A: Provide one alternative referral for each service, and disclose any additional compensation they may receive;
B: Disclose the full amount of any additional compensation to be received, and obtain the client's approval;
C: Disclose the full amount of any additional compensation;
D: Use whatever services their employing Broker tells them to use.
Answer: B: Disclose the full amount of any additional compensation to be received, and obtain the client's approval;
Business