Which term describes fees or anything of value accepted by a broker in exchange for referrals of real estate closing services?

• A. Kickbacks
• B. Unjust commission
• C. Sole Proprietor Broker
• D. Trade name (fictitious name)

Answer: (A)

Kickbacks describe fees or anything of value accepted by a broker in exchange for referrals of real estate closing services. This practice is prohibited because it can influence a consumer’s choice of service providers and raise closing costs, with RESPA and Florida real estate law specifically restricting referral-based payments. Legitimate compensation must be for actual services performed and not simply for steering business. The other terms refer to a type of compensation, a business structure, or a fictitious name, none of which describe a referral fee, so they don’t apply here.