Legal Question in Real Estate Law in California

RESPA Violation

In past, real estate agent has paid all or some of cost of clients' home warranty when they buy home. Mortgage broker is offering to pay the warranty when broker refers clients who finance through him. Does this violate RESPA since agent sine he's being saved expense of paying for warranty. If okay, is there a diclosure requirement to buyer?


Asked on 5/06/08, 3:24 pm

1 Answer from Attorneys
Mitchell Roth MW Roth, Professional Law Corporation

Re: RESPA Violation

Yes. It is illegal under RESPA to pay anthing of value for referral of business. I don't think disclosure cures this problem.

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Answered on 5/08/08, 9:21 am


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