A Utah licensee receives a referral fee from a mortgage lender for recommending the lender to clients. Is this permissible under RESPA and Utah law?
Correct Answer
B) No, RESPA prohibits kickbacks and referral fees for settlement services, and Utah enforces these provisions
The Real Estate Settlement Procedures Act (RESPA) Section 8 prohibits the payment or receipt of referral fees or kickbacks for settlement services, including mortgage referrals. Utah enforces RESPA provisions, and a licensee who receives such fees may face both federal penalties and state disciplinary action from the Division of Real Estate.
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Related Topics & Key Terms
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Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
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