In Thursday’s IAR Legal Webinar, IAR Legal Hotline Attorney Betsy Urbance and IAR Transaction Helpline Attorney Jeff Baker discussed some of the permitted and prohibited practices for real estate agents and brokers relating to affiliated business arrangements and marketing service agreements.
These issues continue to be governed by the federal Real Estate Settlement Procedures Act (RESPA) statute and regulations, they said. Real estate professionals make up just one of several categories of people defined as Settlement Service Providers under RESPA. Others include attorneys, mortgage brokers, appraisers, representatives of home warranty companies.
While much has been in the news lately concerning TRID, a combination of some Truth-In-Lending and RESPA regulations, and which over the loan origination and settlement process, RESPA still governs other aspects of federally related real estate transactions as well.
In one example, Baker and Urbance noted that RESPA does not allow Settlement Service Providers to exchange referral fees, and payments collected from consumers must be for “distinct and identifiable services.”
For more information on this member-only benefit, REALTORS® can log in and download the webinar or listen to the audio-only version.