Escrow & Title
In Michigan, RESPA (Real Estate Settlement Procedures Act) prohibits:
ARequiring title insurance
BKickbacks and referral fees for settlement services✓ Correct
CBuyers from hiring their own attorneys
DSellers from paying closing costs
Explanation
RESPA prohibits kickbacks and unearned fees between settlement service providers. Paying or receiving referral fees for steering clients to specific service providers is a federal violation.
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