What is a characteristic of a referral fee paid to an out-of-state broker in Florida?

A referral fee paid to an out-of-state broker in Florida operates under specific regulations designed to ensure that brokers maintain professional integrity and compliance with state laws. The correct perspective here is that an out-of-state broker can provide a referral fee to a Florida broker, but they cannot participate directly in the transaction. This is to ensure that the out-of-state broker does not engage in practices that require a Florida real estate license, which includes facilitating the transaction in any manner beyond the referral itself.

The requirement for the out-of-state broker to accompany the customer without participating effectively underscores the distinction between making a referral and actually conducting real estate business within Florida. The out-of-state broker can facilitate a connection but must leave actual transaction management to a properly licensed Florida broker, thus upholding the integrity of state regulations.

The other options do not reflect the legal realities surrounding real estate transactions and out-of-state brokers in Florida. For instance, the participation of the broker in a transaction would necessitate licensure in Florida, which is not permissible for an out-of-state broker working solely on referral fees. Unregulated fees would not only violate licensing laws but could also lead to potential unethical practices, and there is no specific limitation like the ten percent cap that applies universally in this context.