Question 54

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 solely to their designated broker. This restriction ensures that the broker remains the primary point of contact for all transactions.

A) refer prospects to any broker.

This option is incorrect because a licensee in referral status does not have the authority to refer prospects to any broker. They must refer all leads directly to their own broker to maintain compliance with licensing regulations.

B) only refer prospects to their broker.

This option is correct as it accurately reflects the limitations placed on a licensee with a salesperson's license in referral status. They are specifically required to channel all referrals through their own broker.

C) refer prospects and conduct an open house.

This option is incorrect because a licensee in referral status is not permitted to conduct open houses. Their role is restricted to making referrals and not engaging in other sales activities.

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

This option is incorrect as it suggests additional activities that a licensee in referral status cannot perform. Cold calling and conducting showings are not allowed; they can only refer prospects to their broker.

Conclusion

The correct answer is B, as it clearly defines the limitations placed on a licensee in referral status. All other options incorrectly suggest that the licensee has broader authority or responsibilities that are not permitted under their current status. Understanding these restrictions is crucial for maintaining compliance in real estate practices.