Home title lock competitors8/12/2023 ![]() ![]() The amount paid to a real estate broker or agent must be commensurate with the value of those goods and services. Payments in Return for Goods Provided or Services PerformedĪ real estate broker or agent must provide goods, facilities, and services that are actual, necessary, and distinct from what they already provide.The activity cannot be in exchange for or tied in any way to referrals. These activities must not defray the expenses that the real estate broker/agent otherwise would have had to pay. Settlement service providers, such as mortgage bankers, mortgage brokers, title insurance companies, and title agents, can provide normal promotional and educational activities under RESPA. In fact, RESPA and its regulation feature a number of exceptions. Not all referral arrangements fall under RESPA’s referral restriction. RESPA also prohibits SSPs from splitting fees received for settlement services, unless the fee is for a service actually performed. RESPA prohibits a real estate broker or agent from receiving a “thing of value” for referring business to a settlement service provider, or SSP, such as a mortgage banker, mortgage broker, title company, or title agent. ![]() Services that occur after closing generally are not considered settlement services. These services include title insurance, mortgage loans, appraisals, abstracts, and home inspections. Services that occur at or prior to the purchase of a home are typically considered settlement services. Dos and Don’ts For Real Estate Brokers and Agents ![]()
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