55-525.12 - (Effective October 1, 2010) Prohibition against payment or receipt of settlement services kickbacks, rebates, commissions, and other payments; penalty. - Virginia Statutes

§ 55-525.12. (Effective October 1, 2010) Prohibition against payment orreceipt of settlement services kickbacks, rebates, commissions, and otherpayments; penalty.

A. No person selling real property, or performing services as a real estateagent, attorney, lay settlement agent or lender incident to any real estatesettlement or sale, shall pay or receive, directly or indirectly, anykickback, rebate, commission, thing of value, or other payment pursuant toany agreement or understanding, oral or otherwise, that business incident toservices required to complete a settlement be referred to any person.

B. Nothing in this section shall be construed to prohibit:

1. Expenditures for bona fide advertising and marketing promotions otherwisepermissible under the provisions of the Real Estate Settlement Procedures Act(12 U.S.C. § 2601 et seq.);

2. The provision of educational materials or classes, if such materials orclasses are provided to a group of persons or entities pursuant to a bonafide marketing or educational effort;

3. The payment to any person of a bona fide salary or compensation or otherpayment for services actually performed for the business of the settlementservice provider; or

4. An employer's payment to its own bona fide employees for referrals ofmortgage loan or insurance business. An employer's payment to its ownemployees for the referral of insurance business shall be subject to therequirements of subdivision B 8 of § 38.2-1821.1.

C. No person shall be in violation of this section solely by reason ofownership in a settlement service provider, where such person receivesreturns on investments arising from the ownership interest.

D. Any person who knowingly and willfully violates this section is guilty ofa Class 3 misdemeanor. Any criminal charge brought under this section shallbe by indictment pursuant to Chapter 14 (§ 19.2-216 et seq.) of Title 19.2.

(1996, c. 883, § 6.1-2.13:1; 1999, c. 109; 2002, c. 599; 2010, c. 794.)