Escrow & Title
The RESPA prohibition on kickbacks means that settlement service providers:
ACannot charge origination fees
BCannot give or receive fees for referring business to one another without services rendered✓ Correct
CCannot advertise their services together
DCannot own affiliated businesses
Explanation
RESPA Section 8 prohibits giving or receiving referral fees, kickbacks, or anything of value for the referral of settlement service business. Providers can co-market but cannot pay each other solely for referrals.
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Key Terms to Know
Encumbrance
Any claim, lien, charge, or liability attached to real property that affects its value or limits its use.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
EasementA non-possessory right to use another person's land for a specific purpose.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
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