A real estate agent refers clients to ABC Title Company and receives a $50 gift card for each referral. This arrangement:
Correct Answer
B) Violates RESPA Section 8 as an illegal kickback
RESPA Section 8 prohibits giving or receiving anything of value for referrals of settlement services. The $50 gift card constitutes a thing of value given in exchange for referrals, making it an illegal kickback regardless of disclosure or amount.
Why This Is the Correct Answer
RESPA Section 8 prohibits giving or receiving anything of value for referrals of settlement services. The $50 gift card constitutes a thing of value given in exchange for referrals, making it an illegal kickback regardless of disclosure or amount.
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