When a real estate licensee receives compensation for referring a client, this is known as what?

When a real estate licensee receives compensation for referring a client, this is accurately recognized as a referral fee. A referral fee is a payment made to a licensed agent or broker for directing a potential client to another agent or to a particular service. It serves as an incentive for agents to share leads and facilitate connections within the real estate market.

The term "valuable consideration" typically refers to something of value that is exchanged between parties in a contract. While it can encompass payments, it is a broader legal principle and doesn’t specifically denote the act of exchanging compensation for a client referral.

"Service charge" generally refers to a fee imposed for providing a specific service, which does not precisely capture the nature of the transaction in this context.

"Commission" is a term that is usually associated with the earnings that a real estate agent gets from the sale of a property, based on the final sale price. Commissions arise from completed transactions rather than just referrals.

Thus, the correct term for compensation received for referring a client to another professional in real estate is a referral fee.