I am a real estate agent in ohio. Our office is wanting to make preferred vendor books with several vendors for each section (people we use and trust kinda thing). My question is can we have the vendors pay for space in the book such as putting a business card or logo in the back of the book? It would be offered to all that will be put in the book and if they choose not to they will still be listed. I'm wondering about respa with this. Thanks
Yes, that could be done if there was full disclosure to the consumer - then RESPA wouldn't be or couldn't be violated. I don't really see how (as you described the facts or circumstances) that RESPA would potentially be violated..The Real Estate Settlement Procedures Act (RESPA), was an act passed by the United States Congress in 1974. It is codified at Title 12, Chapter 27 of the United States Code, 12 U.S.C. §§ 2601–2617.It was created because various companies associated with the buying and selling of real estate, such as lenders, real estate agents, construction companies and title insurance companies were often engaging in providing undisclosed kickbacks to each other, inflating the costs of real estate transactions and obscuring price competition by facilitating bait-and-switch tactics.The Act prohibits kickbacks between lenders and third-party settlement service agents in the real estate settlement process (Section 8 of RESPA). Even reciprocal referrals among these types of professions could be construed in court as a violation of the law of RESPA. It requires lenders to provide a good faith estimate (GFE) for all the approximate costs of a particular loan and finally a HUD-1 (for purchase real estate loans) or a HUD-1A (for refinances of real estate loans) at the closing of the real estate loan. The final HUD-1 or HUD-1A allows the borrower to know specifically the costs of the loan and to whom the fees are being allotted. Beginning January 1, 2010, amendments to RESPA restrict the amount that fees can increase between the GFE and HUD-1 or HUD-1A. Origination charges are not allowed to increase, while certain third party service providers' fees can increase by no more than 10%.
20 years extensive experience in real estate law, foreclosure, finance, and landlord tenant law.
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