What exactly is a RESPA violation?
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What exactly is a RESPA violation?
My real esttae agent on a short sale has a negotiator and his fees come out of her commission. She will not submit his fees to escrow because of a possible RESPA violation. What is that?
Asked on April 10, 2012 under Real Estate Law, California
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Don't you hate when people "talk" in acronyms? Never be afraid to ask; it is actually a bad reflection on THEM for not explaining things. RESPA is the Real Estate Settlement Procedures Act enacted in 1974 to provide consumers with disclosure about closing costs and to prohibit unearned fees (kickbacks/referral fees). An example is if a real estate broker or sales associate accepted money from mortgage lenders for steering homebuyers to the lender. In other words, she is not doing something that is legal under the law i your state. Contact a real estate attorney here. Good luck.
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