Before you read
Test yourself first: 5 questions
Question 1 of 5
A title company offers a broker $100 for every buyer referred for closing services. The broker should:
Answer: C. RESPA Section 8 bans kickbacks for referrals of settlement-service business on federally related loans — disclosure does NOT cure it. Only payments for services actually rendered at market value are permitted.
Question 2 of 5
RESPA's prohibition against kickbacks and referral fees is found in which section, and what does it forbid?
Answer: A. Section 8 of RESPA prohibits giving or receiving any fee, kickback, or thing of value for referring settlement service business, to keep settlement costs honest.
Question 3 of 5
Accepting an undisclosed kickback from a service provider the agent referred is:
Answer: A. Undisclosed referral kickbacks breach the duties of disclosure/loyalty and may violate RESPA for settlement services.
Question 4 of 5
RESPA primarily:
Answer: B. The Real Estate Settlement Procedures Act requires clear disclosure of closing/settlement costs and bans kickbacks/referral fees for settlement services.
Question 5 of 5
In the rectangular (government) survey system, one section equals:
Answer: A. A section is 1 square mile = 640 acres; 36 sections make a township.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
Payments for services actually performed at market value are fine. AFFILIATED BUSINESS ARRANGEMENTS (broker owns a stake in the title company) are legal ONLY with written disclosure, an estimate of charges, and no requirement to use the affiliate. Agents may give consumers gifts; they may not take payola from lenders or title reps. Penalties are criminal — fines and jail, per violation.
RESPA Section 8 — Kickbacks & AfBAs: FAQs
Is RESPA Section 8 — Kickbacks & AfBAs on the real estate exam?
Yes. Brokerage & Practice is a scored domain on the real estate licensing exam, and this topic appears in the national portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
