60 hr final RE
What is the purpose of an operating budget?
It provides income and expense projections.
Which term refers to a tract of land divided into lots or plots and used for building purposes?
Subdivision
Out-of-state licensees who want to be licensed in Washington may be able to ______ if their license were active within the past six months and is/was in good standing.
Take only the state portion of the Washington licensing exam
You demonstrate the fiduciary duty of accounting by ____________.
Taking care of your client's funds and paperwork
The Johnsons are shopping for a mortgage loan and are attracted to the below-market interest rate offered for the first year of an adjustable rate mortgage. They likely have a ______.
Teaser rate
Which of the following is an example of a metes and bounds description?
"Beginning at the iron pin 30 paces from the center of the brook that runs across the road Southwesterly from the dwelling ..."
Dominic's seller clients want him to lower his commission rate. What's the best way for him to reply?
"I base my fees on my services. Which services would you like to give up?"
How should you respond to a buyer who says the following? "I know that you technically can't show me just the white neighborhoods, but I'm paying for your help. My time is valuable, and I don't want to waste it going to showings in neighborhoods I don't want to see. If you won't screen properties for me the way I want you to, I'll find someone else who will."
"I'm sorry that you feel that way. If I can't change your mind, I think we should terminate our agreement, and you can look for another real estate professional."
Washington broker and managing broker examinations are presented in entirely different formats. What is the format of each?
130 multiple choice questions on the broker exam and 15 simulation questions on the managing broker exam
According to the PMI Act of 1998, at what percentage of equity position does personal mortgage insurance cancel for homeowners?
22%
Which of the following types licenses is required for a real estate firm to operate in Washington?
A brokerage firm license
According to the Federal Communications Commission, who or which entity may call a person listed on the national Do Not Call Registry?
A business that has established a business relationship with the person
What is a general lien?
A claim against a person and all of that person's property
Which of the following is true about condominium ownership?
A condo is a single-family dwelling.
What's a legal description?
A description of the land that specifies the boundaries and location of a specific piece of real property
Michael doesn't have a real estate license, but he helps his friend, Nancy, sell her home. What can Michael legally receive as compensation?
A heartfelt thank you
What's a vendee's lien?
A lien against real property for the earnest money deposit paid on a contract of purchase
What's a finder?
A person who introduces the buyer and seller, but doesn't represent either party
What's it called when a person who has possession of a property through a life estate abuses the property or allows it to deteriorate?
Act of waste
Which term involving trespassing is used when someone other than the owner claims title to real property?
Adverse possession
The Washington Real Estate Commission serves in a(n) ______ capacity to the DOL director.
Advisory
Licensed Washington non-residents may be able to perform limited real estate services in Washington if they ______.
Agree to work with and be supervised by a Washington designated broker
What's the term for paying off a loan over time?
Amortization
What exactly is a deed?
An instrument of conveyance
A real estate licensee can provide which of the following opinions?
An opinion regarding the listing price
Activities that restrain trade and reduce competition and choices for consumers are considered to be _______ violations.
Antitrust
Government tax assessment offices determine the _________________ by comparing similar properties in a geographic area.
Assessed value
When assigning a contract, the assignor should ensure that ______ is not prohibited in the purchase contract.
Assignability
Prior to closing on the property, Monica substituted her daughter's name, Melanie, as the buyer. Although Melanie is now listed as the buyer, Monica isn't released from her contractual obligations. This is an example of ______.
Assignment
Washington real estate records should be accessible for three years after a transaction, but if they're older than one year, they may be kept __________.
At a central file storage facility
Where should Washington real estate companies store the transactional and accounting records that the state requires them to keep?
At the license location
Which of these is an example of illegal market allocation?
Based on licensee expertise, Uptown Homes agrees with Country Cottage Realty to focus exclusively on suburban, rather than rural, homes.
Which type of contract involves an exchange of consideration between two parties?
Bilateral
Which of the following statements about the duties that seller and buyer clients owe to their agents is true?
Both seller and buyer clients owe duties to their agents.
Appraiser Niles uses ______ to determine a range of values based on comparing a subject property to comparable sales. He makes sure to use some comparables that lack features of his subject property, and others that have even more desirable features, to balance out the comparison.
Bracketing
______ is a process in which an appraiser determines a probable range of values for a property by comparing a group of comparable sales to the subject. The appraiser attempts to include both superior and inferior units of comparison, such as age, transaction price, etc.
Bracketing
Assume you're a Washington broker entering into an agreement with a client to help her look for a property to call her own. What's the title of the document used to identify your agency relationship's terms?
Buyer's Agency Agreement
Dual agent Barbara Park can only disclose Seller Carrie's reason for moving if:
Carrie gives her written permission to do so.
Which of the following is an example of the duty of obedience?
Carrying out a client's instructions
The appraiser applies a capitalization rate to an income comparison of similar properties with which of the four methods used to measure depreciation?
Capitalized value
Carlos, a property manager at Your Best Bet Property Management Company, manages multiple properties for their owners. Which of the following statements is true?
Carlos's job is to lease the units to quality tenants at the highest rent possible.
Which document is provided to borrowers no fewer than three days prior to closing and provides details about the costs of the transaction?
Closing Disclosure
The process the government uses to take someone's property is called __________.
Condemnation
Which agency duties survive termination of an agreement?
Confidentiality and accounting
What must you disclose to be in full compliance with an agent's fiduciary duty to disclose?
Conflicts of interest, material facts, and adverse material facts
Buyer Josephine had just signed a contract on a house when she discovered that seller's agent Franklin knew that this house was 3500 square feet, but he listed it at 3900 square feet. Which essential contract element has been compromised?
Consent
Jamie enters an agreement to buy Yolanda's home. Per the agreement, Jamie promises to provide a $5,000 earnest money deposit, whereas Yolanda promises to sell her home to Jamie. These promises represent forms of ________, which are required to make the contract valid.
Consideration
What occurs when a tenant moves out because an issue with the unit makes the unit uninhabitable, such as a lack of heat in the winter?
Constructive eviction
Which of the following is true about title to a property?
Constructive notice to the public of interest in a parcel of real estate occurs when the deed is recorded and physical possession of the property is taken.
Jeanine believes she's been the victim of a deceptive advertising scheme. What Washington regulation addresses this?
Consumer Protection Act
You're obligated to preserve all the confidential information you receive from a seller client. This obligation ________.
Continues even after your fiduciary relationship with the client ends.
What term is used to describe the illegal use of escrow funds, such as earnest money?
Conversion
Washington's fair housing law includes 12 protected classes, adding _____ to the seven federally protected classes.
Creed, sexual orientation, marital status, the use of a guide dog or service animal, and honorably discharged veterans or other military statuses
The Washington Real Estate Commission works primarily with which entity in helping to administer licensing law?
DOL
As supply increases, price ______.
Decreases
Chrystal is opening a new real estate firm in Washington. Which of the following licensure categories is she required to have?
Designated broker
What are the two categories of Washington licensure that require a DOL endorsement?
Designated broker and branch manager
What type of agency exists when a buyer's broker is the listing agent for the same property?
Dual agency
You represent a seller as a single agent. What's it called when you're simultaneously working for the buyer's best interests in the transaction without the seller's knowledge?
Dual agency
What are the two categories of comparison when evaluating comparables to a subject property in the market comparison approach?
Elements and units
Maria's neighbor is building a shed in his backyard that appears to be about a foot over the property line into her yard. What term describes the placement of the shed on Maria's property?
Encroachment
Which type of REIT receives most of its revenue from rental of their properties?
Equity REITs
What type of listing agreement provides the most protection for the listing agent's commission?
Exclusive right to sell
Which term describes a contract in which the parties have met all agreement terms?
Executed
What's the term for a contract for which one or more terms have yet to be completed?
Executory
A landlord discovers that his married tenants are expecting their first child. He wouldn't have rented to the couple had he known they were going to have children, so he serves them with an eviction notice and tells them they must be out in 30 days. The landlord is guilty of ______.
Familial status discrimination
Which act encourages fair, truthful, non-deceptive, and evidence-supported claims in advertising?
Federal Trade Commission Act
Which laws does the Office of Fair Housing and Equal Opportunity uphold?
Federal fair housing laws
The Emery family, along with 20 other families, purchased a timeshare estate that will enable them to share a condominium in a resort community. A timeshare estate involves a _______ type of ownership.
Fee simple
Gene took out a mortgage from First Federal Bank in Washington. Because Washington is a title theory state, who or what retains title to the property?
First Federal Bank, the lender
A borrower makes the same monthly mortgage payment for the entire term of the loan. At the end of the loan period, all of the interest and principal is paid off. This is known as a ______ loan.
Fully amortized
What's the purpose of an administrative law hearing?
Hear licensing law complaints and isprospective resolution decisions.
Who appoints members of the Washington Real Estate Commission?
Governor
Which type of mortgage has a payment that adjusts (usually upward) based on a predetermined schedule and amount?
Graduated payment
In what type of lease does the landlord pay taxes, maintenance, and insurance?
Gross lease
Which loan type is a fixed-rate mortgage where the monthly payments increase over time, according to a set schedule?
Growing equity
A line of credit that's based on a percentage of the equity a person has in a property and which can be drawn upon for a number of years is known as a ______.
Home equity line of credit
Tim, a new buyer client, is pre-approved for a mortgage loan of as much as $250,000. This information can help to _______.
Identify properties
A landlord locks a tenant out and requires the tenant to pay past-due rent before regaining access to the unit. This is considered ______.
Illegal
What type of agency exists because of the actions and behavior of the parties?
Implied agency
Which of these statements describes the relationship between the Washington Legislature and the Department of Licensing?
In your real estate practice, you may find yourself consulting rules to help you interpret and comply with all relevant laws.
Washington law strictly regulates how trust funds are to be managed. Which of the following is mostly likely to come into question if the DOL audits a broker?
Inability to provide proof that funds were received, accounted for, and disbursed as required by law
Jacob and Cynthia are purchasing a house from Carlos. They want to be protected from having to purchase the house if they find substantial property condition defects. What can they do with the contract to protect themselves?
Include an inspection addendum with their offer.
With which approach to value does the appraiser analyze a property's ability to earn future income?
Income approach
How are independent contractors compensated and their income reported?
Independent contractors do not receive a salary and must pay self-employment taxes.
Which IRS forms are independent contractors and employees required to complete?
Independent contractors fill out W-9s, and employees fill out W-4s.
Which scam, as described by the FBI, involves an appraiser working secretly with a borrower and providing a fraudulent appraisal report to the lender?
Inflated appraisal
The DOL director received a complaint against broker Carl Savage and has decided to investigate. What's the next step in the process?
Issue a notice of complaint and rights to Carl
What's true of a contract amendment once it's signed by both parties to the transaction?
It carries the weight and legal force of the original contract.
Given all of the laws prohibiting discrimination in housing, why does it still occur?
It often happens outside of the public eye.
What's a subordination agreement?
It's an agreement that a previous lender signed allowing a later lender to take over the primary, or first, loan position.
What is the purpose of a deed?
It's used to transfer real property from one party to another.
What type of emails are prohibited by the CAN-SPAM Act?
Junk emails
Lacey is preparing an offer for her buyer clients, and it's time to fill in the amount of earnest money they're going to offer. Which of the following statements is true regarding what earnest money the buyers should offer?
Lacey should allow her clients to determine the amount of the earnest money offered.
The earth's surface, extending downward to the center of the earth and upward to infinity, including permanently-attached natural objects, is called ______.
Land
______ may be found in paint in homes built before 1978.
Lead
Who's responsible for passing real estate-related laws in Washington?
Legislature
Your client, Brian, is an investor who likes to put as little cash down on his investments as possible. Brian believes in the power of ______.
Leverage
If a Washington broker violates a compensation law, what's one possible sanction that may be imposed by the Washington State Department of Licensing or Real Estate Commission?
License suspension
Which of these statements about licensee cooperation is true?
Licensees must cooperate with other licensees, but only if it is in their client's best interest and if there is no Dominique to compensate cooperating licensees.
Investors in commercial real estate often give up _________ when they purchase a new property.
Liquidity
The price for which an owner offers to sell a property is called the ______.
List price
A property owner's right to access ponds, lakes, oceans, and other closed bodies of water bordering the owner's land is called ______ rights.
Littoral
Janie's got an open house on Sunday but lets her friend in on Saturday to preview it. It's love at first sight! With the owner out of town, Janie decides to cancel the open house so there won't be any other offers. Her friend makes an offer and it's accepted on Monday. What fiduciary duty or duties has Janie breached?
Loyalty and disclosure
What are the three most common forms of legal descriptions?
Metes and bounds, lot and block, and rectangular government survey
What instruments are commonly used to secure the purchase of real property?
Mortgage and deed of trust
Sam the appraiser is most likely to use the cost approach for which of the following properties?
Movie theater
In addition to residential and commercial real estate sales, King County Realty has an active residential property management department. The firm rarely holds earnest money on sales transactions, so it has a single trust account for earnest money and security deposits. The firm ______.
Must hold all trust funds in interest-bearing demand deposit accounts
Which of the following responsibilities does the commercial property manager have that the residential property manager doesn't have?
Negotiate leases
Serena works in the property management department of a large apartment complex. For which of the following tasks would she be required to hold a real estate license?
Negotiating the lease rate with a tenant
The commission amounts that individual brokers receive from their Washington real estate firms are determined by ______________.
Negotiations between the broker and the firm
When preparing the sales contract, when is it acceptable for a licensee to offer legal advice to the client?
Never
Dawn and John own a home together, but they're getting a divorce. They agree that John will keep the house and assume the loan they signed together. Will the alienation clause in their security document prevent the assumption?
No, because lenders may not enforce an alienation clause if the assumption is part of a divorce settlement.
The designated broker for Jennifer's firm left the firm without warning. Can Jennifer and her fellow licensees continue to provide brokerage services?
No. Until a new designated broker is in place, the firm's license and all individual licenses are made inactive.
On the Washington Buyer's Agency Agreement form, the buyer relationship options are _____ or exclusive buyer agency.
Non-exclusive
Sheila and Vickie are sisters who enter into a contract to buy a vacation property. The sisters get into a dispute, and Vickie no longer wants any part of the deal. However, Sheila talks her younger brother Joe into replacing Vickie on the contract. Vickie agrees to the substitution. This is an example of ________.
Novation
You prepared a comparative market analysis and have a plan for educating the seller about the value you can provide. Which stage of the residential sales process are you in?
Obtaining the listing
If bank fees are greater than the earned interest on a Washington trust account, the bank will notify the designated broker that a deposit is needed to cover the account liability. How long does the designated broker have after notification to make a deposit?
One day
Which of the following is true about pocket listings?
Only individuals the seller or listing agent inform about the property know they are for sale.
Mary, who's suffering from Alzheimer's disease, signs a contract to buy Edgar's home. Before the deal closes, it's determined that Mary lacks legal capacity to enter into a contract. Which party is permitted to void the contract?
Only the buyer, Mary
In the conveyance of real property after death, what trumps any terms specified in the deceased person's will?
Operation of law
After signing a purchase contract, buyer Pam and seller Waylon both realize that the address for Pam's newly-purchased home reads "344 Beverly Way" instead of the correct address: "334 Beverly Way." Which of the following is true about this situation?
Pam or Waylon can void this contract and present a new one with the correct address.
_______ can be defined as everything that's not real property.
Personal property
Place the stages of the loan approval process in the correct order.
Pre-qualification, loan application, mortgage commitment
At a business meeting among heads of the top brokerages in town, the keynote speaker discussed a minimum listing fee. What's this is an example of?
Price fixing
Which mortgage market is made up of lending institutions that lend directly to the consumer?
Primary market
What does the rectangular government survey system use as the basis for legal descriptions?
Principal meridians, base lines, and sections
When a Washington buyer and seller enter into an agreement to transfer ownership of property, what type of contract will be used to complete the transaction?
Purchase and sale contract
Which of the following is an example of single agency?
Randolph from ABC Realty represents Cindy, a buyer for Carol's listing. Carol is affiliated with Net Realty.
Land, plus all things permanently attached to it naturally or artificially, is ______.
Real estate
Leading up to closing, who should ensure that all deadlines are being met, all contingencies are cleared, and all paperwork is fully executed and delivered?
Real estate licensee
Real estate, plus all of the interests, benefits, and rights included in ownership, is also known as ______.
Real property
After selling your first house, you decide to cash the commission check yourself, and then give a bonus to your licensed assistant. What type of violation have you committed?
Receiving and paying undisclosed commission
The ______ isn't used in states that were part of the original 13 colonies, or in Texas, West Virginia, and Kentucky.
Rectangular government survey system
If licensees are asked to discriminate, what must they do?
Refuse
The Consumer Credit Protection Act, which includes the Truth in Lending Act, is often referred to as _________________.
Regulation Z
Bart and Claire are under contract for Claire to buy Bart's house, but her financing fell through. They decide to cancel the contract just as if it never happened. Which termination method does this describe?
Rescission
Which of these is an example of a rectangular survey system description?
S ½ SE ¼ NW ¼ Section 2, Township Clarkson
When an appraiser relies on comparable properties to estimate the adjusted market price of a property, the appraiser is using the _______ approach.
Sales comparison
The number of properties available describes this factor that influences value.
Scarcity
The installment land contract is what type of financing?
Seller
When preparing a property for showing, which of the following is true?
Sellers should not be present for showings.
Earned interest on Washington interest-bearing trust accounts must be documented as credits on a brokerage ledger called a "Housing Trust Account Interest" ledger. What will appear as debits on this ledger?
Service fees
If Mega Corporation owns real property, chances are it owns it in ______.
Severalty
Washington escrow agents are required to keep their records longer than real estate licensees. How long must escrow agents keep them?
Six years
Abe signs a contract to buy Penelope's home. The deal eventually closes, but Penelope fails to hand over the home's keys to Abe. A week passes, and Abe files a lawsuit in an attempt to force Penelope to give him the keys. This is an example of ________.
Suing for specific performance
Washington financial institutions aren't permitted to establish auto payment of a mortgage if the trust account contains ________.
Tenant security deposits
Before closing, who is generally responsible for obtaining an appraisal, completing the loan application, ordering a home inspection, and securing homeowners insurance?
The buyer
Which of these situations would result in the earnest money being disbursed to the seller?
The buyer includes hard money in the purchase offer, then terminates the sale when the appraisal comes in low.
Which of the following is true about VA loans?
The VA guarantees 25% of the home loan amount.
What's a promissory note?
The borrower's promise to repay another party under specified terms
From whom or what entity do licensees receive compensation for brokerage services once a transaction is closed?
The brokerages for both sides receive their share of brokerage fees and disburse licensee shares to them.
A managing broker can perform certain real estate company operations in Washington, but only if those tasks have been delegated by __________.
The company's designated broker
Archie wants to buy Claire's membership share in a cooperative. Which of the following statements is true?
The cooperative board must approve Archie's application before Claire can sell her membership share to him.
Only firms and brokers with active licenses may perform real estate services, and every firm must have a designated broker. Which of the following may cause inactivation of a Washington broker's license?
The designated broker's failure to maintain an active license
Why might a buyer want to assume a loan?
The existing loan has a lower interest rate than current market rates.
What happens to a joint tenant's share of property when the joint tenant dies?
The joint tenant's interest goes to the remaining joint tenants. If only one joint tenant is left, that joint tenant owns the property in severalty.
If a Washington landlord needs to enter a tenant's dwelling for non-emergency purposes, what must happen first?
The landlord must give a two-day notice.
Which of the following statements is true about a licensee's duties to a landlord the licensee represents?
The licensee owes the same statutory duties to the landlord as to a buyer or seller client.
What is a margin, as it relates to an adjustable rate mortgage?
The number of percentage points that are added to the index to determine the rate
You represent Cynthia and Ronald, who signed a contract to buy Margie's home. The contract included the phrase, "time is of the essence." You explain to Cynthia and Ronald that this phrase means ______.
The parties agree to proceed in good faith and not unduly delay the process.
Which option is a right guaranteed under the Privacy Act of 1974?
The right to see federal records about yourself
Edgar's in the process of selling his home as a short sale. What's a short sale?
The sale of a property at an amount less than is owed, not including closing costs
Teresa, a potential buyer in Washington, isn't allowed to waive her right to receive a seller disclosure statement. Which of the following must be true?
The seller has responded "yes" to something in the Environmental section of the disclosure statement.
Why would a retail tenant be willing to sign a lease in which a percentage of sales proceeds are paid to the landlord?
The tenant wants to reduce the base rent.
Olivia has paid off her Washington mortgage loan. What happens now?
The trustee releases the deed of trust that secured her mortgage loan.
What is an initial cap, as it relates to an adjustable rate mortgage?
The value that limits the amount that interest can adjust at the mortgage's first interest rate adjustment
What is a lifetime cap, as it relates to an adjustable rate mortgage?
The value that limits the amount the rate can adjust over the life of the loan
How do discrimination testers work?
They send two different applicants whose only difference is status within a protected class, and test whether the applicants are treated differently.
Renatta is under contract to sell her home to Marcus. Marcus has a financing contingency, and he finds that he's unable to get financing for the home. He terminates the contract under this contingency. Renatta's brokerage firm is holding the earnest money. What is their responsibility regarding disbursement of those funds?
They can disburse the funds without a release because the agreement terminated according to the contingency terms.
How many approaches to value do appraisers generally use?
Three
How long should records related to a real estate firm's trust accounts be retained in Washington?
Three years
Licensees in Washington may NOT receive or solicit valuable consideration from ___________.
Title agents
What's designed to protect buyers from financial loss if the title to the property they buy has defects?
Title insurance
What duties does a buyer agent have to the seller?
To disclose the agent's relationship with the buyer
What's the purpose of police power?
To ensure the health, safety, and welfare of the public
What's the purpose of testing with regard to fair housing?
To uncover hidden discrimination
Which of the following is a residential dwelling with attached walls, where the owner also typically owns the land on which the home sits?
Townhome
What's alienation with regard to real estate?
Transferring ownership of a property
Ralph leases 1,000 square feet in a large warehouse. The lease agreement requires him to pay portions of the landlord's taxes, insurance, and maintenance, in addition to the amount he pays to lease the space. What type of lease does Ralph have?
Triple net lease
How should Washington trust accounts be named?
Trust accounts should be called "trust accounts" along with the name of the real estate company.
Gerald creates a trust to convey his property to his heirs. His friend, Nancy, is placed in charge of making sure the terms of the trust are carried out. In this example, Nancy is the ________.
Trustee
Carla creates a trust to convey her assets to her children. Her brother, Alvin, is placed in charge of making sure the terms of the trust are carried out. In this example, Carla is the ________.
Trustor
Managing brokers in Washington are legally required to provide heightened supervision for brokers with fewer than ________ of experience
Two years
Which entity guarantees loans?
U.S. Department of Veterans Affairs
In order to assist your clients with environmental issues, what must you do?
Understand the risks and disclose everything.
What effect will a property's utility have on the value if it's currently uninhabitable?
Value will be pushed downward.
In which type of contract does only one of the parties offer consideration?
Unilateral
Violators of the Sherman Antitrust Act may be subject to fines. For what amount may corporations and individuals be liable?
Up to $100 million for corporations and $1 million for individuals
Melissa, a new broker, is excited to meet with her first seller. She knows she needs some sort of form to outline her agreement with the seller. What should she do?
Use the approved form provided by her brokerage, likely through NWMLS.
Denise just purchased a new home. According to the Washington Consumer Protection Act, she also has an implied ______ on the home.
Warranty of habitability
What agency is responsible for enforcing fair housing laws in Washington?
Washington State Human Rights Commission
Broker Hilary is helping Kiley rent out her Washington investment property, and tells Hilary to rent only to married couples. Hilary thinks she's in the clear because federal law supersedes state law. Which of the following is correct?
Washington added marital status to the seven federal protected classes, and Kiley must follow the more restrictive state law.
Which of these statements best describes the legality of commission sharing in Washington?
Washington licensees may share their commissions with other licensed individuals. Payment must flow through the brokerage firm.
If Rina wants to pay off her mortgage early, what might she consider before doing so?
Whether she'll incur a pre-payment penalty
Fiona and her husband, Ed, have just entered into their first-ever agency agreement with their new agent, Ken. The couple is a little nervous, but they like the idea that they have something in writing that explains both their agent's responsibilities and what they're expected to do as part of the relationship agreement. Life is good. What type of agency exists between Ken and his clients?
Written express agency
Gloria is Tom's listing agent. An unrepresented buyer asked for Gloria's help in preparing an offer. In Washington, can Gloria assist the buyer if he doesn't want to be represented?
Yes, licensees can perform clerical acts without creating an agency relationship.
Trinity is 18 and wants to be a managing broker in Washington. She has completed the required 90 hours of coursework. What else might prevent her from taking the managing broker's licensing exam?
Yes. She must have at least three years of experience as an active broker or DOL-approved related experience.
Which of the following best describes the fiduciary duty of confidentiality?
You must not share your client's confidential information.
In which of the following situations is it legal to receive compensation?
You refer a client to your sister, who works at another real estate agency. When she gets her commission check, she sends you a thank you note.