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notsponge [240]
4 years ago
5

The law that prohibits an escrow agent from compensating any individual for referring customers or accounts is found in

Law
1 answer:
Vinil7 [7]4 years ago
8 0

<u>Section 8</u> of the Real Estate Settlement Procedures Act prohibits an escrow agent from compensating any individual for referring customers or accounts

Explanation:

<u>Section 8</u> of <u>Real Estate Settlement Procedures Act</u> prohibits a escrow agent from compensating  any individual for referring customers or for any such services performed.The other terms used for this are <u>kickbacks, fee-splitting and unearned fees. </u>

<u>As per HUD a person who violates the section 8 of Real Estate Settlement Procedures Act can face imprisonment of 1 year and a fine of $ 10000</u>

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