RESPA Compliance - No Kickbacks

As an agent affiliated with this Firm you are required to comply fully with the Real Estate Settlement Procedures Act (“RESPA”) at all times. Generally speaking, RESPA prohibits kickbacks, referral fees, receiving unearned fees or receiving a “thing of value” for the referral of business related to a real estate transaction. RESPA also prohibits the splitting of any settlement charge except for paying for actual services rendered at fair market value. In addition to being an anti-kickback act, RESPA is a disclosure act as well. This does not mean, however, that a kickback or unearned fee that is disclosed is legal. A RESPA violation can occur whenever there is a thing of value that is to be given in exchange for a settlement service referral. The agreement can be implied from the circumstances or from historical patterns and practices. Thus, an oral agreement to provide a referral fee to a settlement provider is a violation of RESPA just as a written agreement to do so would be. As a member of LAER Realty, you are not permitted to accept any form of incentive from any person affiliated with any settlement service. This would include the settlement service provider agreeing to pay costs that you normally would incur as part of your brokerage activities. Likewise, you cannot provide any gifts, bonuses, or incentives to any settlement service providers as well. It is particularly important to contact the LAER CEO or COO if you have, or are considering having, any affiliated business arrangements, as such arrangements raise particular issues with respect to RESPA compliance. If you ever are in doubt or have a question regarding whether proposed conduct might violate RESPA, you are required to immediately contact the LAER CEO or COO to discuss this issue.