Section 8 RESPA: "Anyone"?

[Joe Calderon]

"Section 8 of RESPA prohibits anyone from giving or accepting a fee, kickback or anything of value in exchange for referrals of settlement service business involving a federally related mortgage loan. In addition, RESPA prohibits fee splitting and receiving unearned fees for services not actually performed."

When they mean anyone, I'm guessing agents as well. But there's a website (http://www.realtor.com/news/ask-a-realtor/to-what-unlicensed-third-parties-are-licensees-allowed-to-pay-commission/) that states that brokers and licensed realtors may actually charge referral fees. Who is right?

[Jean Bolger]

Here's your confusion, I think. This is specifically about: "settlement service business involving a federally related mortgage loan. In addition, RESPA prohibits fee splitting and receiving unearned fees for services not actually performed." (This part about receiving fees for services not performed should be self-explanatory) 

When an agent pays a  referral fee to another agent, that is usually for sending them a client, and that is OK. For instance, if I knew someone who was moving to your town and needed to by a home then I could refer them to you (if you're an agent) and you could pay me a small portion of your commission (should you end up getting one) for sending you the business.  That's very different from me telling a client to work with a specific title company because the title company will give me a kickback, which is what's being addressed here.

Different states have different takes on payment of referral fees to unlicensed people in other situations, I think. In my state it's a no no. So check with your state real estate board.