Question 69

A licensee who has a salesperson's license in referral status can only refer prospects to their broker.

A licensee in referral status is limited to referring prospects specifically to their own broker and cannot engage in other activities typically associated with active sales roles.

A) refer prospects to any broker

This option is incorrect because a licensee in referral status is not permitted to refer prospects to any broker. They can only direct their referrals to their own broker, maintaining the integrity of their status.

B) only refer prospects to their broker

This option is correct as it accurately reflects the limitations placed on a licensee in referral status. The individual can only refer prospects to their designated broker and is not authorized to engage in other sales activities.

C) refer prospects and conduct an open house

This option is incorrect because a licensee in referral status cannot conduct open houses. Their role is restricted to making referrals to their broker, thus excluding them from active sales responsibilities.

D) refer prospects, cold call for leads and conduct a showing

This option is incorrect as it implies that a licensee in referral status can engage in cold calling and conduct showings, which is not allowed. They are only authorized to refer prospects to their broker.

Conclusion

The correct answer, B, is definitive because it aligns with the regulatory framework governing referral statuses for licensees. All other options incorrectly suggest broader permissions that are not available to someone in referral status, emphasizing the importance of adhering to established guidelines in real estate practice.