Delaware License LawIntermediateDelaware Exam

A Delaware real estate licensee receives a referral fee from a mortgage lender for steering a buyer to that lender. This is:

APermissible if both parties consent in writing
BA RESPA violation — Section 8 prohibits kickbacks and referral fees between settlement service providersCorrect
CPermissible as long as the fee is disclosed to the buyer
DOnly illegal if the fee exceeds $500

Why A RESPA violation — Section 8 prohibits kickbacks and referral fees between settlement service providers Is Correct

Answer B: A RESPA violation — Section 8 prohibits kickbacks and referral fees between settlement service providers

RESPA Section 8 prohibits kickbacks and referral fees between settlement service providers (lenders, title companies, agents). Receiving a fee from a mortgage lender for steering a buyer violates RESPA.

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