Commissions and Referrals
What to Know to Avoid RESPA and Real Estate Referral Lawsuits
Could a list of preferred providers put you at risk of legal woes? Possibly. The Real Estate Settlement Procedures Act (RESPA) doesn’t specifically mention preferred provider lists. Still,…
Is Zillow’s Joint Marketing Program a Violation of RESPA?
Increasing Scrutiny of RESPA Violations Joint marketing activities between real estate agents and lenders have been the subject of inquiry by governmental authorities as a potential violation of…
Legal Review: What Is a RESPA Violation?
The purpose of the Real Estate Settlement Procedures Act (RESPA) is to prevent abusive settlement charges that plagued this country’s real estate industry in the past -- and…
The “Procuring Cause” Claim
Over the years of handling risk management matters, I invariably see disputes where the real estate agent who was not the listing or selling agent on a closed…
Get to Know RESPA Before RESPA Gets to Know You
In 1974, Congress passed the Real Estate Settlement Procedures Act (RESPA) to regulate and monitor the real estate industry. Since that time, RESPA has mystified more than one…
Are Agent Commission Agreements Enforceable?
Agreements between agents to share commissions may be enforceable even where the agents are affiliated with different brokers. In a new case, Sanowicz v. Bacal, (2015) 234 Cal.App.4th…
Allowable Referrals and Commission Splits in California Real Estate Transactions
In California, the Bureau of Real Estate and California law permit a licensed real estate brokerage to pay a referral fee for a real estate transaction to a…
Legal Alert: Commissions
RealPro, Inc. v. Smith Residual Co.; Fourth Dist. February 28, 2012 Smith Residual Co. (the Sellers) owned 46.8 acres of vacant land in Riverside County, CA. They retained…
