In the relationship between the lender and the real estate licensee, which action is NOT allowed?

In the context of real estate law, option D addresses the issue of referral fees between licensees and lenders. While it is true that a real estate licensee can receive a referral fee for directing a client to a lender, there are strict regulations governing how these fees are structured.

In particular, the Real Estate Settlement Procedures Act (RESPA) stipulates that any fee paid for a referral should not be considered a payment for services actually rendered and should not exceed nominal amounts—often stated as not exceeding $50, in line with the regulatory framework. The purpose of these provisions is to prevent abuse and ensure that referrals are made in the client's best interest rather than for monetary gain.

Therefore, while it might seem like clients can be referred based on monetary incentives, the law dictates that the referral fee structure cannot be more substantial than allowed. This makes option D the correct choice as it encapsulates the legal parameters surrounding the payment of referral fees between lenders and real estate licensees. Understanding this is vital for licensees to navigate compliant relationships with lenders while prioritizing client interests.