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Legality:Can investors pay referral/finder's fees 2 someone who refers a property (pd after closing) in OR/WA? |
I have heard that in some states referral fees or finder's fees paid to someone after closing for letting an investor know about a property may or may not be illegal? The only thing I can find online is related to RESPA at the HUD site: No, this is not legal. The only time this would be legal is if the "finder" had a real estate license and was employed by a broker. Without a license it is not legal to be involved with real estate transactions. Check it out with the National Association of Realtors. Ask their legal team. It is illegal under RESPA for anyone to pay or receive a fee, kickback or anything of value because they agree to refer settlement service business to a particular person or organization. For example, your mortgage lender may not pay your real estate broker $250 for referring you to the lender. It is also illegal for anyone to accept a fee or part of a fee for services if that person has not actually performed settlement services for the fee. For example, a lender may not add to a third party's fee, such as an appraisal fee, and keep the difference. If nobody on either side is a licensed real estate agent or lender and you're not talking about the settlement/title company then RESPA doesn't apply. |
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