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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Ambassador
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John McCormack
Albuquerque Homes Realty * www.AlbuquerqueHomes.com - Albuquerque, NM
AlbuquerqueHomes.com, Albuquerque Homes Realty

Gary -  You're right people do think this way.  You're also right there are no kick backs. Not in my world of business!  Hope you enjoy a great Saturday!

Jan 21, 2012 11:03 AM #1
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Debb Janes
The Carl Group, LLC - Camas, WA
REALTORĀ®, EcoBroker Camas, Washington

RESPA makes it very clear and that's the way it should be...my associated vendors work well a team - but I always make it clear to my clients, that they can choose anyone they feel comfortable with...I also encourage them to do their homework regarding lenders, and other vendors,  such as inspection companies and contractors.

Jan 21, 2012 11:06 AM #2
Rainer
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go to RealEstateFaster.com & get 20 Listing Appointments per month
Real Estate Faster - Los Angeles, CA

Love the photo, very cute! Also great point on making it clear to clients that they can choose any vendor they feel comfortable with.

Jan 21, 2012 11:31 AM #3
Rainmaker
254,308
Connie Goodrich
Keller Williams Realty - McKinney, TX
CRS ABR (McKinney Realtor)Texas

Sweet and great photo with this post.  I am quick to add that the only thing I receive from a recommendation is good service of a trusted source that will be an excellent resource.  You are right, many believe we get money for giving out a name.

Jan 21, 2012 12:13 PM #4
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Deb "Alayne" Brooks
Alayne Brooks, Re/Max Elite Group, Wichita Falls Texas - Wichita Falls, TX
940-500-4010 Wichita Falls Real Estate

Gary, you are not kidding about the idea people have of us. I had one man ask me point blank..."and how much money are you making on this!" Ouch. At least I was able to answer..."NONE!"

FEATURED AT DIARY OF A REALTOR

Deb

Jan 21, 2012 12:39 PM #5
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Jerry Newman
Green Home Realty, 210-789-4216,www.Selling-SanAntonioHomes.com - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Hi Gary. No one wants to violate any rules from RESPA. So, kick backs are out. I make suggestions and recommendations for lenders, escrow officers, or inspectors, but the final decision is always with my clients. 

Jan 21, 2012 12:41 PM #6
Rainmaker
589,706
Than Maynard
Coldwell Banker Heart of Oklahoma - Purcell, OK
Broker - Licensed to List & Sell - 405-990-8862

Cute photo. As I go over my cost sheets and the Buyer's or Seller's eyebrows start going up I explain that I receive nothing other than the commission. Every charge is from teh lender, title company, etc etc.

Jan 21, 2012 12:50 PM #7
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Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

I hope people that don't know at all about RESPA will see this along the way and know these rules were set up to prevent unscrupulous conflict of interest problems between parties and protect the public. More often I hear so many people think we get paid by these other companies.

Jan 21, 2012 01:23 PM #8
Rainmaker
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Sharon Lee
Sharon Lee's Virtual Assistance - Hurt, VA

Cute pic.

Jan 21, 2012 03:19 PM #9
Rainmaker
1,813,933
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

A lot of professions allow kickbacks and so most people think that we do also.  We need to educate people and it is an on going job to do so.

Jan 21, 2012 03:22 PM #10
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Connie Harvey
Pilkerton Realtors - Brentwood, TN
Realtor - Nashville TN Real Estate

Gary, they also think we work on a salary and get a car allowance. Kickbacks just don't happen.

Jan 21, 2012 04:12 PM #11
Rainmaker
340,475
Vern Eaton
Askov, MN
Realtor 320-630-6995

Many years ago I was working with a company and I was a bit green, but things just didn't seam right.  one day they closed just before they did my closing. 

It was a good lesson for me to run when things are shaddy.

Jan 21, 2012 05:54 PM #12
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Patricia Kennedy
Evers & Company Real Estate, Inc. - Washington, DC
For Your Home in the Capital

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.

Jan 21, 2012 06:51 PM #13
Rainmaker
1,443,483
Kristin Johnston, Waukesha Realtor 414-254-6647
RE/MAX Realty Center - Waukesha, WI
Waukesha County Realtor, RE/MAX Buyer Agent

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

Jan 22, 2012 10:15 AM #14
Rainmaker
288,797
LaNita Cates
REMAX of Joliet - Joliet, IL

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.

Jan 22, 2012 11:10 AM #15
Rainmaker
1,256,007
Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents
Lyon Real Estate - Sacramento, CA
Put 40 years of experience to work for you

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.

Jan 22, 2012 11:46 AM #16
Rainmaker
398,633
John Cannata
214-728-0449 http://TexasLoanGuy.com - Frisco, TX
Texas Home Mortgage - Purchase or Refinance

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

Jan 23, 2012 06:00 PM #17
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Gary Woltal

Assoc. Broker Realtor SFR Dallas Ft. Worth
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