Question

Under what conditions may an unlicensed person receive a referral fee from a timeshare developer?

a) Must be an existing timeshare owner, cannot show or negotiate, cannot refer more than 20 prospects in a calendar year, and cannot receive more than $1,000 in fees in that year.
b) Cannot show or negotiate, cannot refer more than three prospects in a calendar year, and cannot receive more than $1,000 in fees in that year.
c) Must be an existing timeshare owner, cannot refer more than five prospects in a calendar year, and cannot receive more than $5,000 in fees in that year.
d) Cannot refer more than 20 prospects in a calendar year, and cannot receive more than $5,000 in fees in that year.

Answer 1

An unlicensed person may receive a referral fee under strict conditions that prevent engagement in activities requiring a real estate license. They typically cannot show or negotiate, are limited in referrals, and there is a cap on fees.

Step-by-step explanation:

The conditions under which an unlicensed person may receive a referral fee from a timeshare developer vary and depend on the specific laws and regulations of the jurisdiction in which the timeshare is located. Generally, to avoid being classified as real estate activity that would require a license, the unlicensed person often must adhere to certain restrictions. One possible set of conditions is: they must not show or negotiate terms for the property, they are limited in the number of prospects they can refer in a calendar year, and there is a cap on the amount they can receive in fees.

In this scenario, the most accurate set of conditions that an unlicensed person may be allowed to receive a referral fee from a timeshare developer seems to be that they: cannot show or negotiate, they cannot refer more than three prospects in a calendar year, and they cannot receive more than $1,000 in fees in that year. Thus, the correct option is (b).