How do you spell RESPA Violation?

How many times have you viewed a listing on the MLS and seen: transaction, compliance, storage, processing or statutory compliance fees?  These fees range any where from $195 to believe it or not $795.   No matter how you say it or print it, there is no way around it, they are a violation of  RESPA.  I have heard all kinds of excuses: They are sanctioned by NAR.  My attorney says it is legal. FR hotline says it’s OK. Or even better:  Everyone else is charging it (reminds me when I was little and the excuse was everyone else is doing it).

Sooner or later, we will begin to get audited by HUD for RESPA violations.  It is just a matter of time.  Already many Buyers are complaining about paying the fee, some have even sued the real estate company and won.  It is just the beginning. There are several court cases that have set a precedent and the Buyers have won their case, along with their legal fees being paid.  So save yourself the aggravation and discontinue the practice and you might just save yourself money in the long run.  No matter what you call it, remember it is a violation of RESPA.

Look to the right and you will see the Featured Link of The Week – it’s a question and answer regarding these fees and it’s available for download.

Until next Monday…

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6 Responses to How do you spell RESPA Violation?

  1. Matey: Thank you so much for this update. One question. Our company does NOT charge any such fees. When we see something like this in our MLS how do we go about reporting and to whom do we report it? Having been in the business since 1978, and 2001 past Prez for MAR, I LOVE to report violations…. My heart goes all aflutter when I see signs in pictures, phone numbers in public remarks and the like. And I do report these to our MLS. Please keep up your great work. I know first hand yours can be a “thankless” job…..So from me to you…..THANKS!
    Betty G. Gambrell, CRS, GRI
    Licensed Real Estate Broker/Manager
    Wagner Realty – El Conuistador
    Bradenton

  2. Don Asher says:

    Matey- Good article and could save some of our members from fines.

  3. Pingback: How do you spell RESPA Violation? « Monday Morning With Matey | NJ Title Insurance

  4. Pingback: How do you spell RESPA Violation? « Monday Morning With Matey « New Jersey Title Insurance

  5. Pingback: How do you spell RESPA Violation? « Monday Morning With Matey | Virginia Title Insurance Continuing Education

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