RESPA and Employee Compensation

The Department of Housing and Urban Development (HUD) allows employers to compensate “bona fide” employees for referrals of settlement service business, but there are conditions. The following provides information about this RESPA exemption. 
 

• HUD’s Views on Paying Real Estate Agents as Part-Time Employees (2008)
• Ask RESPRO®: Obtaining Pledges from Real Estate Agents to Promote Affiliated Services (2006)
• RESPA and Employee Compensation: The Basic Rules (2005)
• Ask RESPRO®: Can a Title Agent Hire a Non-Real Estate Agent Who Works in a Real Estate Brokerage Office as a Title Salesperson? (April 2004)
• Ask RESPRO®: The Employee Compensation Exemption (2003)
• HUD: Real Estate Agents Can't Be Paid as Employees (2003)
• Watch Out for Sham Employee Arrangements, HUD Enforcement Head and RESPA Experts Warn (2000)