A seller has a mortgage they want to get rid of, I solicit to find a buyer for the seller's mortgage note and receive a fee for introducing them. In other words, I'm the middle man, am I breaking any laws?
2007-08-19 12:02:24 · 3 answers · asked by Laney 1 in Business & Finance ➔ Renting & Real Estate
Yes, you are breaking RESPA laws that bar referral fees, because it's not a real service.
The only legal referral fee is between licensed Real Estate agents, but the actual COST of the commission is not increased to compensate for that....and even that, must be disclosed on the HUD.
It's a felony...so if I were you, I would find another way to make a living.
2007-08-19 12:16:55 · answer #1 · answered by Expert8675309 7 · 0⤊ 1⤋
To refer a buyer and seller of actual real estate,(somebody wants to buy a house) you need a license to get paid, (that's also if you refer a buyer or seller to a real estate agent - a referral fee can only be paid to a licensed broker) To refer a person to a mortgage originator (somebody needs to get a loan to buy a residential property) you cannot get paid (lenders cannot pay referral fees on residential loans)
But to be a go-between for the sale of an existing real estate note - sorry, I don't know.
2007-08-19 12:24:41 · answer #2 · answered by teran_realtor 7 · 0⤊ 0⤋
You are breaking the law. It requires a real estate license to broker mortgages.
It is an actionable offense .... you can be sued
2007-08-19 12:37:36 · answer #3 · answered by Anonymous · 0⤊ 0⤋