RESPA compliance question.
If a broker advertises he pays sellers to list with him and that he will pay them one half of the commission at closing to buyers if they use his services. Is this a violation? I have video link of him telling his business practices and could send it in private message if needed for clarity.
In general, RESPA prohibits a real estate broker or agent from receiving a “thing of value” for referring business to a settlement service provider (SSP) like a mortgage banker, mortgage broker, title company, or title agent. According to the NAR, SSPs are also prohibited from splitting fees received for settlement services unless the fee is for a service that was actually performed.
For additional information about RESPA violations, check out our guide here: https://fitsmallbusiness.com/what-are-respa-violations/
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