California Real Estate Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Study for the California Real Estate Exam with confidence. Engage with interactive questions designed to enhance your understanding of real estate principles, laws, and practices. Prepare thoroughly for your licensing test and ensure you have the knowledge to succeed in your real estate career!

Practice this question and more.

A broker regularly pays a finder's fee to his barber who often sends customers to him. Which of the following is true?

This practice is encouraged
Payment of this fee is standard practice
Payment of this fee is illegal
This is considered a broker's commission

The correct answer is: Payment of this fee is illegal

Paying a finder's fee to a barber for bringing in customers is illegal according to broker regulations. This is because the fee can potentially lead the broker to give preferential treatment to the customers referred by the barber, which goes against the ethical standards of the industry. Option A is incorrect because the practice is actually discouraged to prevent potential bias. Option B is also incorrect as standard practices should align with ethical standards. Option D is incorrect as a broker's commission is different from a finder's fee and is regulated differently.