Massachusetts License Law

A Massachusetts real estate licensee who receives a gift card worth $200 from a mortgage company for referring clients may have violated:

ANo law since the gift is under $500
BRESPA (Real Estate Settlement Procedures Act) which prohibits kickbacks for referrals of settlement services✓ Correct
COnly Massachusetts agency law
DOnly if the client was not informed

Explanation

RESPA Section 8 prohibits giving or receiving any thing of value in exchange for the referral of settlement service business (including mortgage referrals). This includes gift cards, cash, or other items of value regardless of amount. Violations can result in fines and criminal penalties.

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