In addition to unearned fees, the Real Estate Settlement Procedure Act (RESPA) also prohibits the payment and receipt of "kickbacks" and referral fees in connection with a real estate transaction. As a result of RESPA's anti-kickback provision, two companies may not work together in a scheme to defraud real estate consumers. For example, it is illegal for a title insurance company and a real estate company to engage in an agreement through which the real estate company pays a fee to a title company for the referral of real estate settlement service business.
These illegal kickback and referral arrangements can result in harm to consumers by removing competition in the real estate industry, leading to overcharging. Consumers who have entered into a real estate transaction that was referred through a kickback arrangement may be entitled to recover money.
If you or someone you know has been charged for a real estate settlement service that violates RESPA's anti-kickback provision, contact the illegal real estate transaction attorneys at Clark, Perdue & List.
