No Hanky Panky With Settlement Vendors In Real Estate

By
Real Estate Agent with Keller Williams Realty 0575737

Horse ar ScratchingIn real estate I am amazed how many clients think there are kickbacks in terms of money to agents for partnerships with associated vendors. There is with ethical agents

No Hanky Panky With Settlement Vendors

Agents recommend title companies, lenders, all sorts of associated settlement services. But RESPA prohibits receiving compensation to the agent depending on who is selected and agents should remain NEUTRAL with those selections.

I'll scratch your back you scratch mine is fine but not in settlement.

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Topic:
ActiveRain Community
Location:
Texas Denton County Flower Mound
Groups:
ETHICS and the REALTOR
EXPRESS WITH PHOTOGRAPHS AT ACTIVERAIN
Keller Williams 'Rainers
Realtors®
Diary of a Realtor
Tags:
ethical behavior real estate

Comments 17 New Comment

Anonymous
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Ambassador
2,266,635
Patricia Kennedy
For Your Home in the Capital
Evers & Company Real Estate, Inc.

Gary, while agents do not get any financial remuneration from affiliated companies, many of the large brokerages do.  The affiliated lender or title company may "rent" space in their offices.  Of course, there is supposed to be disclosure, but most buyers pay little attention to it.

January 21, 2012 06:51 PM
Rainmaker
1,265,222
Kristin Johnston, Waukesha Realtor 414-254-6647
Waukesha County Realtor, RE/MAX Buyer Agent
RE/MAX Realty Center

He he hee...glad I didn't miss this one..you always post the cutest stuff...enjoy your Sunday!

January 22, 2012 10:15 AM
Rainmaker
271,013
LaNita Cates
REMAX of Joliet

I always stress to my clients that I'm not asking you to talk to my lender because I get a kickback. I use her because she is good. I say the same about everyone I work with. I don't do them.

January 22, 2012 11:10 AM
Rainmaker
1,145,466
Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents
Put 40 years of experience to work for you
Lyon Real Estate

I hear you, Pat, #13, about those affiliated business relationships. Those disclosures are supposed to be presented early on in the process but often they are given just before closing. When it's too late for clients to choose another vendor. And you are correct, they don't know what they mean and they don't care, but they should.

January 22, 2012 11:46 AM
Rainmaker
398,592
John Cannata
Texas Home Mortgage - Purchase or Refinance
214-728-0449 http://TexasLoanGuy.com

There will always be clients that feel there are 'kickbacks' no matter what the law says.

January 23, 2012 06:00 PM
Anonymous
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Ambassador
1,481,723

Gary Woltal

Assoc. Broker Realtor SFR Dallas Ft. Worth
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