Question 69

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

A licensee with a salesperson's license in referral status is limited to referring prospects solely to their designated broker. This restriction ensures that all referral activities are managed through the broker, maintaining compliance with licensing regulations.

A) refer prospects to any broker

This option is incorrect because a licensee in referral status cannot refer prospects to any broker. They are specifically required to direct all referrals through their own broker, which ensures that the broker maintains control over client relationships and transactions.

B) only refer prospects to their broker

This is the correct answer as it accurately describes the limitations placed on licensees in referral status. They are permitted to refer prospects exclusively to their own broker, thereby aligning with regulatory standards governing real estate transactions.

C) refer prospects and conduct an open house

This option is incorrect because a licensee in referral status is not allowed to conduct open houses. Their role is limited to making referrals, and they cannot engage in active selling or promotional activities on behalf of their broker.

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

This option is also incorrect as it overstates the capabilities of a licensee in referral status. They are prohibited from cold calling for leads or conducting showings; their function is strictly to refer prospects to their broker.

Conclusion

The correct answer, option B, accurately reflects the limitations imposed on licensees in referral status, which is to refer prospects solely to their designated broker. All other options suggest activities that exceed the scope of what a licensee can do in referral status, thus affirming that B is the definitive response.