Wait a minute. Maybe that’s the way you do business, but that is not the way all Realtors do business. The fact is, it is way too easy to become a Realtor and as a result there are many many “players” out there who are getting referral fees.

There are entire business models designed around RESPA so that Realtors can collect a 1% origination fee in exchange for doing some “work” on the file. That work might consist of filling out an application and is designed to skirt RESPA.

There are mega firms where brokers “encourage” their agents to sell their clients on in-house mortgage and title. There have been numerous complaints of referral fees and other illegal kickbacks.

Be paranoid and in many cases your paranoria will have turned out to be right on point.

Doug MIller

Doug, yes there are ways to skirt the rules, but RESPA requires an affiliated business disclosure in that case — otherwise it’s a violation of the law.

As to the fact that Purva (and by extension, Elite Properties) does business the right way, and the fact that Purva documents that way of doing business here: I couldn’t be more delighted.

You can point out how ethical we are any time you like. A 14 x 48 foot billboard along Route 50 near Folsom makes a useful format.

I know of a realtor that has a lender on site and they use the lender for alot of sales I always wondered it was allowed. Probably just amatter of location and nothing more but I wonder.

You know, it is natural connection and the law just makes it official or not. I think it is nothing immoral or even dangerous. Good realtors help you to find a home and solve everything connected (for example we help our customers also with Toronto parking permits) You get an offer and you have to consider it – and it doesn’t matter if it is property offer, or property offer connected with a loan or ….new vacuum cleaner offer.

Hello guys,

“RESPA” has pretty specific guidelines on “Affiliated Business Disclosures” — those two keywords may help. Julie, I would beg to differ on what the law does at least here in the states. RESPA doesn’t make anything about settlement providers official — what it does is prohibit certain practices that were common before the law was enacted.

Speaking of guidelines, I want you to let you know first of all that I really appreciate the comments, but call to your attention the Comment Policy regarding names. Holly Hill Florida Real Estate and Toronto Condos are link titles — that incidentally do no particular good because of the “nofollow” tag. I’m working on having more folks come here as people if I can. I may be fighting a losing battle on this one, but if I don’t start fighting it I’ll never know. I’ve taken the liberty of editing — hope that’s OK with you or let me know if you want a different name.

I appreciate your support.

Anyway thanks again for visiting and the comments.