Home Buying in 92111>Question Details

 r_evans1963, Real Estate Pro in San Jose, CA

Can a broker pay a fee (transaction coordinator) for the agent to use his DOC escrow company? Seems this would be a violation of RESPA

Asked by r_evans1963, San Jose, CA Thu Jan 24, 2013

Help the community by answering this question:

Answers

3
R_Evans1963,
Not sure why no one addressed this. You can certainly ask the broker outright if what they are doing is not in conflict with Respa or with the California Business & Professions Code (http://leginfo.ca.gov/calaw.html). You can also take your question to the real estate board that your broker belongs to, such as http://www.sdar.com or the California Association of Realtors at http://www.car.org or contact the California Department of Real Estate http://www.dre.ca.gov
Hope that helps.
1 vote Thank Flag Link Thu Jan 24, 2013
You are undoubtedly correct.

However, most Realtors know which Escrow Companies are good and which are great.
No money or gifts can be exchanged.
0 votes Thank Flag Link Fri Jan 25, 2013
I'm not sure why no one answered yet either. I didn't because I prefer not to work for a broker that suggests we use any of their preferred services, and maybe I'm opening a can of worms here, but I can only think of one reason why a broker would. There's got to be something in it for a broker to pay someone else's fee to use one of his/her affiliated services. The escrow company may be great though, but so are many others. Is the client saving anything here, or is this just a win for the broker and agent? If you have to ask, it must have sounded wrong to begin with. But, Fred was kind enough to give you the resources to check on it. And my question - why didn't you ask your broker this question?
0 votes Thank Flag Link Fri Jan 25, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer