Section 1024-14 of Regulation X prohibits the payment of reference fees. Referral fees are only allowed between two brokers when the broker receiving the referral fee is not involved in providing a service in the underlying home sale transaction. Real Estate Evaluation Mortgage Insurance Home Inspection Ohio law allows real estate licensees to pay referral fees to real estate licensees licensed in another state or country. Conversely, licensees are prohibited from paying referral fees to unlicensed entities.
Relocation companies often demand a referral fee, but they are not licensed themselves. Unfortunately, this is an example of how a licensee is prohibited from paying a referral fee. Specifically, the law prohibits a real estate service provider (explained below) from paying another any referral fee, bribery, or anything else of value for a referral. A real estate service provider is anyone who provides a service related to a real estate transaction.
You can decide that your company limits the payment of referral fees to authorized agents only. In that circumstance, you limit your exposure to any RESPA violation. Receive instant access to our FREE e-book Blueprint to Becoming A Real Estate Agent. Receive instant access to our FREE e-book Blueprint to Becoming A Real Estate Appraiser.
Receive instant access to our FREE e-book Blueprint to Becoming a Mortgage Loan Officer. No person shall surrender or accept any charge, bribe, or other thing of value pursuant to any agreement or understanding, oral or otherwise, that a business incident or part of a settlement service involving a mortgage loan related to the federal government will be referred to any person. Any referral from a settlement service is not a compensable service, except as set forth in § 1024,14 (g) (. A company cannot pay any other company or the employees of any other company for the referral of a liquidation services company.
You can file a complaint and submit license applications online. Requests that you do not want to submit or that are not available online can be sent by mail for processing. License Examiner (80) 734-4249: Deborah Friday Lockard, licensing supervisor (80) 734-4209 of the Carolina Department of Consumer Affairs When a person able to refer a settlement services company, such as an attorney, a mortgage lender, a real estate agent or agent, or a developer or builder , receives a payment for providing additional settlement services as part of a real estate transaction, such payment must be for services that are real, necessary and different from the primary services provided by that person. In this case, a broker only does business with a “preferred lender, escrow or securities company”, which prohibits competition from other service providers, and the broker and preferred provider accept a specific bribe.
Agents are also prohibited from paying a fee to any other broker or agent without first directing payment through the broker that employs the agent.