Section 8 of RESPA (Kickback Prohibition)
Section 8 (12 U.S.C. 2607): prohibits kickbacks and referral fees in settlement services. 8(a): no fees for referrals. 8(b): no fee-splitting for unperformed services. "Thing of value": cash, gifts, trips, credits, anything. Penalties: criminal ($1K fine, 1 year prison), civil (3x kickback + fees), regulatory (CFPB). SOL: 1 year. Applies to: title, lending, appraisal, inspection, attorney services.
Prohibitions
- 8(a): no referral fees
- 8(b): no unearned fee-splitting
- "Thing of value": broadly defined
Examples
- Agent "marketing fee" from title company
- Lender paying agent per referral
- Builder-to-title company fees
Penalties
- Criminal: $1K + 1 year
- Civil: 3x amount + fees
- CFPB regulatory action
Related Terms
- RESPA — Settlement law
Barnes Walker Real Estate
Barnes Walker’s attorneys ensure RESPA compliance in Florida. Request a legal inquiry for assistance.
Florida Law Reference
12 U.S.C. § 2601 et seq. (RESPA); Fla. Stat. § 627.7711
Real estate closings in Florida are governed by federal RESPA requirements and state title insurance regulations. Florida is a "title state" where closings are typically handled by title companies or attorneys.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC