Legal Question in Real Estate Law in Louisiana

Realtor Referral Incentives Given By Mortgage Companies

Are mortgage companies allowed to give gift cards and other incentives to real estate agents for the agent giving the company a favorable recommendation?


Asked on 7/05/06, 10:37 am

1 Answer from Attorneys
Marx Sterbcow Sterbcow Law Group LLC

Re: Realtor Referral Incentives Given By Mortgage Companies

No, this would be illegal under the Real Estate Settlement Procedures Act (RESPA) sections 8(a) which carries a criminal fine of up to 1 yr in jail and a 10,000 fine per incident plus civil penalties which would be treble damages plus attorneys fees. This would be considered a kickback in exchange for something of value in return for business or future business.

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Answered on 7/05/06, 11:34 am


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