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#523535 - 03/28/06 10:57 PM realtor kickback?
beegee Offline
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Joined: Feb 2004
Posts: 1,093
South
We have been approached by our local realtor group to sponsor a continuing edcuation seminar for the realtors. Is this considered a kickback?

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#523536 - 03/29/06 12:30 PM Re: realtor kickback?
DeeQ Offline
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Joined: Dec 2002
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Turnpike Exit 10
I don't think that it would fall under RESPA, would there be any financial benefit?
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#523537 - 03/29/06 02:57 PM Re: realtor kickback?
beegee Offline
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Joined: Feb 2004
Posts: 1,093
South
I was thinking that this would not be allowed because the realtor could steer business our way and our sponsorship could influence this. Am I stretching on this one?

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#523538 - 03/29/06 03:15 PM Re: realtor kickback?
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,832
Bloomington, IN
As long as the seminars are open to all Realtors then I see no problem.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#523539 - 03/29/06 07:26 PM Re: realtor kickback?
beegee Offline
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Joined: Feb 2004
Posts: 1,093
South
What if it is for one specific real estate agency only?

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#523540 - 03/29/06 08:25 PM Re: Realtor kickback?
Dan Persfull Offline
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Dan Persfull
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Posts: 46,832
Bloomington, IN
If you're doing it for a specific agency, at no charge, then IMO it could be construed you're doing it in anticipation of referrals from that agency. However, I seem to remember something about "education", however I can't find anything. Does anyone have any insight on this?
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The opinions expressed are mine and they are not to be taken as legal advice.

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#523541 - 03/30/06 04:18 PM Re: Realtor kickback?
beegee Offline
Diamond Poster
Joined: Feb 2004
Posts: 1,093
South
bump

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#523542 - 03/30/06 05:44 PM Re: Realtor kickback?
Princess Romeo Offline

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Where the heart is
RESPA - 3500.14 (g) (vi)
(g) Fees, salaries, compensation, or other payments. (1) Section 8 of RESPA permits:

(vi) Normal promotional and educational activities that are not conditioned on the referral of business and that do not involve the defraying of expenses that otherwise would be incurred by persons in a position to refer settlement services or business incident thereto;


http://www.fdic.gov/regulations/laws/rules/6500-2520.html#6500res3500.14

Just don't serve food!
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#523543 - 03/30/06 06:06 PM Re: Realtor kickback?
beegee Offline
Diamond Poster
Joined: Feb 2004
Posts: 1,093
South
thanks Bonnie - I did find something that states that it is permissible if "a mortgage lender sponsors an educational lunch for real estate agents. If, however, the mortgage lender subsidizes the cost of continuing legal education credits, this activity may be seen as defraying costs the agent would otherwise incur, and may be characterized as an unallowable referrral fee." The source is from a Realtor publication and the author is a realtor though.

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#523544 - 03/30/06 08:41 PM Re: Realtor kickback?
Princess Romeo Offline

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Princess Romeo
Joined: Jun 2001
Posts: 8,272
Where the heart is
You know.... there's lunch and then there's LUNCH! I've always said that RESPA Section 8 should be dubbed the "Buy a donut, go to jail." law!

From 3400.14 of RESPA:

(d) Thing of value. This term is broadly defined in section 3(2) of RESPA (12 U.S.C. 2602(2)). It includes, without limitation, monies, things, discounts, salaries, commissions, fees, duplicate payments of a charge, stock, dividends, distributions of partnership profits, franchise royalties, credits representing monies that may be paid at a future date, the opportunity to participate in a money-making program, retained or increased earnings, increased equity in a parent or subsidiary entity, special bank deposits or accounts, special or unusual banking terms, services of all types at special or free rates, sales or rentals at special prices or rates, lease or rental payments based in whole or in part on the amount of business referred, trips and payment of another person's expenses, or reduction in credit against an existing obligation. The term "payment" is used throughout 3500.14 and 3500.15 as synonymous with the giving or receiving any "thing of value'' and does not require transfer of money.
_________________________
CRCM,CAMS
Regulations are a poor substitute for ethics.
Just sayin'

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