Which of the following describes a kickback in real estate?

A kickback in real estate refers specifically to an unauthorized payment made to one party for referring a client or business to another party. This practice is often considered unethical and can violate laws and regulations governing real estate transactions, such as the Real Estate Settlement Procedures Act (RESPA) in the United States. In a typical kickback scenario, a professional (like a real estate agent or mortgage broker) might receive payment or a benefit from another business (like an inspector or a title company) in exchange for steering clients towards that business, without disclosing this arrangement to the client.

This definition sets it apart from the other options. A payment made to a brokerage for services rendered is a legitimate fee for the work done, such as facilitating a transaction. A fee paid to the seller at closing is a straightforward part of the real estate transaction process, where the seller receives proceeds from the sale. A discount on closing costs is often a promotion or an incentive offered to help buyers save money, which is generally acceptable and legal. Therefore, it is the unauthorized nature of the kickback in option C that makes it a distinct and non-compliant practice in real estate.