The Department of Financial Services, which regulates title insurance companies, and the Department of Business and Professional Regulation, which regulates real estate brokers and sales associates, have both noted an increase in recent months in the number of complaints regarding title insurance companies paying financial “kickbacks” to real estate brokerage firms, sales associates, or mortgage brokers in exchange for referrals. Real estate licensees who accept a kickback for referring a customer may be less than fully open about the customer’s options.
Florida vigorously enforces anti-kickback rules. It would be a serious violation if a title insurance agent did any of the following for a real estate licensee:
- printing or paying for printing advertising materials;
- furnishing or paying for office equipment;
- providing or paying for cell phones;
- providing or paying for fuel for vehicles;
- sponsoring, hosting or paying for open houses; and paying real estate agents to fill out processing forms in exchange for contracts.
Real estate licensees should take care not to receive any such “favors” or payments from title insurance companies, appraisers, mortgage companies or home inspection companies for the referral of business because of violations of state and federal law.
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