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Commissions and Referrals

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Navigating RESPA as a Real Estate Licensee – Referral Fees and Beyond

Do you or your team members ever pay referral fees? Do you have a list of preferred contractors that you give to clients? Do other companies to whom…

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RESPA Compliance for Real Estate Brokers

It is essential that Real Estate Brokers have an understanding of the Real Estate Settlement Procedures Act (RESPA). RESPA is a federal law governing real estate transactions involving…

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Procuring Cause and Real Estate Selling Commission Disputes — 3 Things You Need Know

A buyer canceled the purchase contract on a property with her first broker. Then, the buyer went into contract again on the same property, using a buyer’s agent…

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Transaction Coordinator Fees and RESPA Violations

In recent years, transactions using Transaction Coordinators (“TCs”) have increased. This article examines risk management issues surrounding not only the charging of TC fees but also the scope…

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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,…

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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…

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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…

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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…

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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…

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Allowable Referrals and Commission Splits in California Real Estate Transactions

In California, the Bureau of Real Estate and California law permits a licensed real estate brokerage to pay a referral fee for a real estate transaction to a…

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