§ 58-27-5. Prohibition against payment or receipt of title insurance kickbacks, rebates, commissions and other payments. - North Carolina Statutes

§58‑27‑5.  Prohibition against payment or receipt of title insurancekickbacks, rebates, commissions and other payments.

(a)        No person or entityselling real property, or performing services as a real estate agent, attorneyor lender, which services are incident to or a part of any real estatesettlement or sale, shall pay or receive, directly or indirectly, any kickback,rebate, commission or other payment in connection with the issuance of titleinsurance for any real property which is a part of such sale or settlement; norshall any title insurance company, agency or agent make any such payment.

(b)        Any person orentity violating the provisions of this section shall be guilty of a Class 2misdemeanor which may include a fine of not more than five thousand dollars($5,000).

(c)        No persons orentity shall be in violation of this section solely by reason of ownership ofstock in a bona fide title insurance company, agency, or agent.  For purposesof this section, and in addition to any other statutory or regulatoryrequirements, a bona fide title insurance company, agency or agent is definedto be a company, agency or agent that passes upon and makes title insuranceunderwriting decisions on title risks, including the issuance of titleinsurance policies, binders and endorsements, and that maintains a separate anddistinct staff and office or offices for such purposes. (1973,c. 1336, s. 1; 1985, c. 666, s. 24; 1993, c. 504, s. 41, c. 539, s. 453; 1994,Ex. Sess., c. 24, s. 14(c).)