The federal law known as "RESPA" only applies to homes with one to four units. It prevents brokers from receiving or giving "referral fees" if they are already working as a transaction agent in the sale of a one-to-four unit home that is being bought with a "purchase-assist, federally-related consumer mortgage."
These are questions that the above text answers:
1. What is the scope of the Real Estate Settlement Procedures Act (RESPA)?
2. Which types of homes does RESPA apply to?
3. What is the purpose of RESPA?
4. What is the restriction imposed by RESPA on brokers?
5. Under what circumstances are brokers prohibited from receiving or giving referral fees?
6. What type of mortgage is covered by RESPA?
7. What is the maximum number of units a home can have to fall under RESPA's jurisdiction?
8. What is the term used to describe brokers who are already working as transaction agents in the sale of a one-to-four unit home?
9. What is the consequence for brokers who violate RESPA?
10. What is the relationship between RESPA and federally-related consumer mortgages?