What is true regarding the finder's fee paid by a broker to a barber for client referrals?

The correct choice highlights that payment of a finder's fee in this context is typically considered illegal. In California, brokers are prohibited from paying fees or commissions to unlicensed individuals for referring clients. This is in place to protect consumers and ensure that only licensed professionals, who have met the necessary educational and ethical standards, are involved in real estate transactions.

Unlicensed individuals, such as barbers, are not authorized to engage in activities that require a real estate license, including making referrals for compensation. Therefore, when a broker offers a finder's fee to someone not licensed, it violates the regulations laid out by the California Department of Real Estate.

In contrast, although some might consider options around legality based on disclosures or the registration of agents, they do not hold validity in this specific scenario. The law is clear: unlicensed individuals should not receive compensation for client referrals in real estate, underpinning the reason for the regulation.