Under the Real Estate Settlement Procedures Act (RESPA), a broker cannot accept any kind of payment or special treatment (such as reduced rent) in exchange for referrals to an escrow agent or any other settlement service provider. This is considered a kickback, which is illegal under RESPA. Choices A, B, and D are not accurate representations of RESPA's stipulations.

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Under RESPA

Question 66

Multiple Choice

Under RESPA:

A) A broker cannot refer a buyer or seller to an escrow agent.
B) An escrow agent cannot collect a fixed fee for services.
C) A broker cannot accept reduced rent in exchange for referrals to an escrow agent who is his/her landlord.
D) Brokers need not disclose a .25% interest in a referral to a title company.

Correct Answer: