Under what condition can a real estate salesperson receive referral fees in Pennsylvania?

In Pennsylvania, a real estate salesperson can receive referral fees only if the receiving licensee is also licensed in Pennsylvania. This requirement is in place to ensure that all parties involved in real estate transactions are operating under the regulations set by the Pennsylvania Real Estate Commission. Having a license ensures that the individual is familiar with Pennsylvania real estate laws, practices, and the ethical obligations required to handle such activities.

For context, many states have regulations that dictate how real estate professionals can engage in referral fee practices. Allowing only licensed individuals within Pennsylvania to receive referral fees helps maintain accountability and protect consumers across the state. It ensures that anyone receiving a fee for referring clients or properties is legally recognized and knowledgeable about local real estate practices.