A Georgia federal court last month issued a decision defeating RESPA claims filed against a listing service and real estate brokers and agents in connection with an alleged illegal kickback and fee-splitting scheme. The plaintiffs alleged that a listing service provider and real estate brokers and agents engaged in a quid pro quo arrangement in which the brokers and agents referred business to the listing service in exchange for kickbacks in the form of patronage dividends. The defendants attacked each claim, and the court agreed with them in a sweeping rejection of the plaintiffs’ case. Read on to find out why the court said the plaintiffs’ claims sought to “muddy the waters” regarding RESPA’s purview on broker commissions, business referrals, fee-splitting and AfBAs.
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