Legal Tip- RESPA
The Courts are at it again with the Real Estate Settlement Procedures Act (RESPA). The U.S. Supreme Court has decided to review if there is a violation of RESPA when a fee charged by a settlement service provider isn’t split as a referral fee or "kickback" to another settlement service provider. NAR has filed an amicus brief with the Court arguing that RESPA is to cover only circumstances where the fee is shared and not where the settlement service provider retains the entire fee. The case at point is important to real estate brokers who wish to charge and retain a flat "administrative fee" for other services in addition to a percentage based commission. Click here to read the amicus brief. For FAQs, webinars, and other resources offering guidance on how to comply with RESPA, see NAR’s online resources. We’ll be sure to advise you once the Supreme Court has ruled on this issue.