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CLAIMPREVENT® BLOG

Commissions and Referrals

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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 permit a licensed real estate brokerage to pay a referral fee for a real estate transaction to a…

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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…

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