Bill Text: VA HB1032 | 2018 | Regular Session | Prefiled
Bill Title: Real estate settlements; prohibition against kickbacks, rebates, or other things of value.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2018-02-13 - Left in General Laws [HB1032 Detail]
Download: Virginia-2018-HB1032-Prefiled.html
Be it enacted by the General Assembly of Virginia:
1. That §55-525.12 of the Code of Virginia is amended and reenacted as follows:
§55-525.12. Prohibition against payment or receipt of settlement services kickbacks, rebates, commissions, and other payments; penalty.
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. The
prohibition of this section shall apply to
referrals made to any affiliated settlement
service provider of any 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.
B. Nothing in this section shall be construed to prohibit:
1. Expenditures 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.);
2. The provision of educational materials or classes, if such materials or classes are provided to a group of persons or entities pursuant to a bona fide marketing or educational effort;
3. 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
4. An employer's payment to its own bona fide employees for referrals of mortgage loan or insurance business. An 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.
C. No person shall be in
violation of this section solely by reason of ownership in a settlement service
provider, where such person receives returns on investments arising from the
ownership interest, provided that such person discloses in writing to the
consumer an ownership interest in those settlement services, including their
ownership percentage in the settlement service provider pursuant to the
requirements of §55-525.13.
D. Any
person who knowingly and willfully violates this section is guilty of a Class 3
misdemeanor. Any criminal charge brought under this section shall be by
indictment pursuant to Chapter 14 (§19.2-216 et seq.) of Title 19.2.
2. That §55-525.13 of the Code of Virginia is repealed.
