§ 6.1-2.13:1. Prohibition against payment or receipt of settlement services kickbacks, rebates, commissions and o...
A. No person selling real property, or performing services as a real estate agent, attorney, lay settlement agent or lender incident to any real estate settlement or sale, shall pay or receive, directly or indirectly, any kickback, rebate, commission, thing of value, or other payment pursuant to any agreement or understanding, oral or otherwise, that business incident to services required to complete a settlement be referred to any person. For purposes of this section, "thing of value" means any payment, advance, funds, loan, service or other consideration.
B. Nothing in this section shall be construed to prohibit (i) payments or sums spent for bona fide advertising and marketing promotions otherwise permissible under the provisions of the Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.) or (ii) providing educational materials or classes, wherein such materials or classes are provided to a group of persons or entities pursuant to a bona fide marketing or educational effort.
C. No person shall be in violation of this section solely by reason of ownership in a settlement service provider as defined in this chapter, wherein such person receives returns on investments arising from the ownership interest. In addition, this section shall not prohibit (i) the payment to any person of a bona fide salary or compensation or other payment for services actually performed for the business of the settlement service provider or (ii) any employer's payment to its own bona fide employees for referrals of mortgage loan or insurance business. Any employer's payment to its own employees for the referral of insurance business shall be subject to the requirements of subdivision B 8 of § 38.2-1821.1.
D. Any person who knowingly and willfully violates this section shall be guilty of a misdemeanor and subject to a fine of not more than $1,000 for each violation. Any criminal charge brought under this section shall be by indictment pursuant to Chapter 14 (§ 19.2-216 et seq.) of Title 19.2.
(1996, c. 883; 1999, c. 109; 2002, c. 599.)
Sections: Previous 6.1-2.10 6.1-2.11 6.1-2.12 6.1-2.13 6.1-2.13:1 6.1-2.13:2 6.1-2.13:3 6.1-2.14 6.1-2.15 NextLast modified: April 16, 2009