New RESPA Interpretive Rule:
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 3500 [Docket No. FR–5425–IA–01]
TITLE: Real Estate Settlement Procedures Act (RESPA): Home Warranty Companies’ Payments to Real Estate Brokers and Agents
AGENCY: Office of General Counsel, HUD.
ACTION: Interpretive rule.
DATES: Effective date: June 25, 2010. Comment Due Date: July 26, 2010.
SUMMARY: Under section 8 of RESPA and HUD’s implementing RESPA regulations, services performed by real estate brokers and agents as additional settlement services in a real estate transaction are compensable if the services are actual, necessary and distinct from the primary services provided by the real estate broker or agent, the services are not nominal, and the payment is not a duplicative charge. A referral is not a compensable service for which a broker or agent may receive compensation… [Read more...]