Finance
Under RESPA (Real Estate Settlement Procedures Act), a kickback paid to a West Virginia real estate agent for referring a buyer to a title company is:
APermitted if disclosed to the buyer
BLegal if the agent has an ownership interest in the title company
CProhibited and illegal✓ Correct
DAllowed with written consent from both parties
Explanation
RESPA Section 8 prohibits kickbacks and unearned fees in connection with federally related mortgage loans. Accepting a payment for referring business to a settlement service provider is illegal, even if disclosed.
People Also Study
Related West Virginia Questions
- RESPA (Real Estate Settlement Procedures Act) governs West Virginia residential closings by requiring:Escrow & Title
- A West Virginia title search that reveals an outstanding mortgage from 10 years ago that was paid but never formally released creates:Escrow & Title
- Under RESPA, a kickback paid by a title company to a real estate broker for referring settlement business is:Finance
- In West Virginia, when the buyer and seller have different attorneys at closing, the title company's settlement agent:Escrow & Title
- A West Virginia title company discovers a previously unreleased mortgage from 1995. Before issuing a title policy, they will require:Escrow & Title
- Under RESPA, a lender in West Virginia may NOT require the borrower to use a specific title company UNLESS:Finance
- A West Virginia property earns $2,500 per month in rent. The property expenses (excluding debt service) are $900/month. The investor paid $240,000. What is the cash-on-cash return if they made a $48,000 down payment and the annual debt service is $12,000?Real Estate Math
- Points paid on a mortgage loan in West Virginia represent:Finance
Key Terms to Know
Adjustable-Rate Mortgage (ARM)
A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
Study This Topic
Practice More West Virginia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free West Virginia Quiz →