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	<title>Comments on: On transparency.</title>
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	<description>Online reputation management and word-of-mouth advertising.</description>
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		<title>By: Cindy Cara</title>
		<link>http://www.steprepblog.com/2009/09/23/on-transparency/comment-page-1/#comment-3507</link>
		<dc:creator>Cindy Cara</dc:creator>
		<pubDate>Sun, 21 Mar 2010 03:55:13 +0000</pubDate>
		<guid isPermaLink="false">http://steprepblog.com/?p=226#comment-3507</guid>
		<description>Most referral-finder&#039;s fees violate a Federal Law-RESPA. 
Q 20.  Can real estate licensee pay a referral fee or finder&#039;s fee to an unlicensed person? 
A  No, if the resulting transaction falls under RESPA.  Yes, if it doesn&#039;t fall under RESPA.  See Question 4 for a list of all those transactions that fall under RESPA.  

A real estate agent may give someone a token of appreciation after receiving a referral (see Question 21).  Furthermore, a real estate agent may give a commission rebate to his or her client (see Question 22). 

For non-RESPA transactions such as the sale of commercial property, residential property with five or more units, agricultural property or vacant land—basically any property other than residential one-to-four unit property--or a transaction not involving a federally-related mortgage loan (e.g., private one-time lender or an all-cash deal), California law allows a real estate agent to pay a referral fee to an unlicensed person for merely introducing a new client.  If, however, the unlicensed person goes beyond arranging an introduction, such as by negotiating the terms of sale on behalf of a principal, the real estate agent may not compensate the unlicensed person for performing licensed acts (Cal. Bus. &amp; Prof. Code § 10138). 

Q 21.  Can a real estate licensee who receives a referral give the referring party a small token of appreciation? 

A  Yes.  After a real estate licensee has already received a referral, he or she may give the referring party a small token of appreciation, such as a potted plant or movie tickets.  However, this arrangement would violate RESPA if there was a prior agreement that the referring party would receive that gift in exchange for the referral.  Also, any gift, no matter how small, may be covered under RESPA, but a small token of appreciation after a referral has already been received should pass scrutiny
Q 8.  What is a &quot;settlement service&quot;under RESPA? 

A    A &quot;settlement service&quot; is defined as &quot;any service provided in connection with a real estate settlement.&quot;  Settlement service providers include, but are not limited to, the following: 

.  Real estate agent or broker;
.  Escrow agent;
.  Title insurer;
.  Lender;
.  Credit reporting agency;
.  Appraiser;
.  Pest inspector;
.  Property surveyor; and
.  Attorney. 

(12 U.S.C. § 2602(3).) 

Hence, as a settlement service provider, a real estate agent is prohibited under RESPA from giving or accepting a referral fee incident to the real estate business, whether the other party to the referral arrangement is a settlement service provider or not.  For example, under RESPA, a real estate agent cannot receive a referral fee for real estate service from a credit repair service, because the real estate agent is a settlement service provider.  It does not matter whether the credit repair service is considered a settlement service provider or not.</description>
		<content:encoded><![CDATA[<p>Most referral-finder&#8217;s fees violate a Federal Law-RESPA.<br />
Q 20.  Can real estate licensee pay a referral fee or finder&#8217;s fee to an unlicensed person?<br />
A  No, if the resulting transaction falls under RESPA.  Yes, if it doesn&#8217;t fall under RESPA.  See Question 4 for a list of all those transactions that fall under RESPA.  </p>
<p>A real estate agent may give someone a token of appreciation after receiving a referral (see Question 21).  Furthermore, a real estate agent may give a commission rebate to his or her client (see Question 22). </p>
<p>For non-RESPA transactions such as the sale of commercial property, residential property with five or more units, agricultural property or vacant land—basically any property other than residential one-to-four unit property&#8211;or a transaction not involving a federally-related mortgage loan (e.g., private one-time lender or an all-cash deal), California law allows a real estate agent to pay a referral fee to an unlicensed person for merely introducing a new client.  If, however, the unlicensed person goes beyond arranging an introduction, such as by negotiating the terms of sale on behalf of a principal, the real estate agent may not compensate the unlicensed person for performing licensed acts (Cal. Bus. &amp; Prof. Code § 10138). </p>
<p>Q 21.  Can a real estate licensee who receives a referral give the referring party a small token of appreciation? </p>
<p>A  Yes.  After a real estate licensee has already received a referral, he or she may give the referring party a small token of appreciation, such as a potted plant or movie tickets.  However, this arrangement would violate RESPA if there was a prior agreement that the referring party would receive that gift in exchange for the referral.  Also, any gift, no matter how small, may be covered under RESPA, but a small token of appreciation after a referral has already been received should pass scrutiny<br />
Q 8.  What is a &#8220;settlement service&#8221;under RESPA? </p>
<p>A    A &#8220;settlement service&#8221; is defined as &#8220;any service provided in connection with a real estate settlement.&#8221;  Settlement service providers include, but are not limited to, the following: </p>
<p>.  Real estate agent or broker;<br />
.  Escrow agent;<br />
.  Title insurer;<br />
.  Lender;<br />
.  Credit reporting agency;<br />
.  Appraiser;<br />
.  Pest inspector;<br />
.  Property surveyor; and<br />
.  Attorney. </p>
<p>(12 U.S.C. § 2602(3).) </p>
<p>Hence, as a settlement service provider, a real estate agent is prohibited under RESPA from giving or accepting a referral fee incident to the real estate business, whether the other party to the referral arrangement is a settlement service provider or not.  For example, under RESPA, a real estate agent cannot receive a referral fee for real estate service from a credit repair service, because the real estate agent is a settlement service provider.  It does not matter whether the credit repair service is considered a settlement service provider or not.</p>
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		<title>By: Edgar</title>
		<link>http://www.steprepblog.com/2009/09/23/on-transparency/comment-page-1/#comment-61</link>
		<dc:creator>Edgar</dc:creator>
		<pubDate>Fri, 02 Oct 2009 21:18:15 +0000</pubDate>
		<guid isPermaLink="false">http://steprepblog.com/?p=226#comment-61</guid>
		<description>There’s so much misinformation out there that people don’t really know what is and is not. It’s refreshing to see people that know what they’re talking about. You have an Informed commentary seems to be a rare commodity these days. Keep it coming.

&lt;a href=&quot;http://reputationmanagementllc.com&quot; title=&quot;Reputation Management Company&quot; rel=&quot;nofollow&quot;&gt;online reputation management&lt;/a&gt; - Reputation Management can help restore your online reputation.</description>
		<content:encoded><![CDATA[<p>There’s so much misinformation out there that people don’t really know what is and is not. It’s refreshing to see people that know what they’re talking about. You have an Informed commentary seems to be a rare commodity these days. Keep it coming.</p>
<p><a href="http://reputationmanagementllc.com" title="Reputation Management Company" rel="nofollow">online reputation management</a> &#8211; Reputation Management can help restore your online reputation.</p>
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	<item>
		<title>By: joditussing</title>
		<link>http://www.steprepblog.com/2009/09/23/on-transparency/comment-page-1/#comment-60</link>
		<dc:creator>joditussing</dc:creator>
		<pubDate>Thu, 24 Sep 2009 19:44:29 +0000</pubDate>
		<guid isPermaLink="false">http://steprepblog.com/?p=226#comment-60</guid>
		<description>gasp! JK... so let me get this transparency thing down- a reward is exactly... what?

What ever it is, I love this site for the reputation management, and I talk about it with anyone that is concerned about their employees &#039;killing&#039; their brand et.</description>
		<content:encoded><![CDATA[<p>gasp! JK&#8230; so let me get this transparency thing down- a reward is exactly&#8230; what?</p>
<p>What ever it is, I love this site for the reputation management, and I talk about it with anyone that is concerned about their employees &#8216;killing&#8217; their brand et.</p>
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		<title>By: Michael A. Charles</title>
		<link>http://www.steprepblog.com/2009/09/23/on-transparency/comment-page-1/#comment-59</link>
		<dc:creator>Michael A. Charles</dc:creator>
		<pubDate>Thu, 24 Sep 2009 18:42:59 +0000</pubDate>
		<guid isPermaLink="false">http://steprepblog.com/?p=226#comment-59</guid>
		<description>Lydia...thanks for raising that point. Don&#039;t worry, we&#039;ve done our research on this and we&#039;re being &lt;em&gt;extremely&lt;/em&gt; careful not to bend any rules.

I&#039;m not acquainted with what the law says in all 50 states, but I&#039;m going to forward your comment to somebody around here who knows a little more about the legal stuff. Watch this space.</description>
		<content:encoded><![CDATA[<p>Lydia&#8230;thanks for raising that point. Don&#8217;t worry, we&#8217;ve done our research on this and we&#8217;re being <em>extremely</em> careful not to bend any rules.</p>
<p>I&#8217;m not acquainted with what the law says in all 50 states, but I&#8217;m going to forward your comment to somebody around here who knows a little more about the legal stuff. Watch this space.</p>
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		<title>By: Lydia M.</title>
		<link>http://www.steprepblog.com/2009/09/23/on-transparency/comment-page-1/#comment-58</link>
		<dc:creator>Lydia M.</dc:creator>
		<pubDate>Thu, 24 Sep 2009 18:29:55 +0000</pubDate>
		<guid isPermaLink="false">http://steprepblog.com/?p=226#comment-58</guid>
		<description>Ehhh...sounds great but you might have used another industry as an example. I&#039;m pretty sure that&#039;s a violation of some states real estate commission regulations.  In some states an agent can lose their license for this type of fee transaction.</description>
		<content:encoded><![CDATA[<p>Ehhh&#8230;sounds great but you might have used another industry as an example. I&#8217;m pretty sure that&#8217;s a violation of some states real estate commission regulations.  In some states an agent can lose their license for this type of fee transaction.</p>
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