law
kickback
A kickback is a payment, fee, or thing of value given in exchange for referring business, without any actual service being performed. In real estate settlement services, the Real Estate Settlement Procedures Act prohibits kickbacks and unearned fees among lenders, title companies, inspectors, and other providers involved in a federally related mortgage loan. Violations can result in fines and imprisonment. Properly disclosed affiliated business arrangements are an exception.
- Exam tip
- Under RESPA, payment must be for services actually rendered. Fees for referrals alone between settlement service providers are illegal kickbacks.
- Example
- A title company pays an agent $200 for every buyer the agent steers to it, with no work performed. That is a prohibited kickback.
Related terms & state variants
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Last verified: 2026-10-23