What must happen for a kickback to be legal in a real estate transaction?

For a kickback to be legal in a real estate transaction, it must be disclosed to all parties involved. Transparency is crucial in real estate practices to maintain ethical standards and ensure that all participants are aware of any compensation being exchanged. The law requires that any arrangements related to compensation must be made known upfront to prevent potential conflicts of interest or deceptive practices. By disclosing kickbacks, all parties can make informed decisions and maintain trust throughout the transaction.

The other options do not align with the legal requirements surrounding kickbacks. For instance, there is no stipulation regarding both parties being uninformed or requiring cash payments, nor is there a fixed monetary limit that determines the legality of a kickback in real estate transactions. Such factors might contribute to misconduct or lack of transparency, which is why clear disclosure is essential.