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What is a Kickback?

In real estate, a kickback is an illegal payment or benefit received by a real estate professional in exchange for referring clients to a specific business or service provider. It's often a hidden payment that is not disclosed to the client.


Examples of kickbacks include:

  • Cash payments: A real estate agent receiving cash from a lender for referring clients to them.

  • Gifts or favors: A real estate agent receiving gifts, vacations, or other benefits from a title company for referring clients.

  • Referral fees: A real estate agent receiving referral fees from a mortgage broker for referring clients to them.

Kickbacks are illegal because they can lead to:

  • Inflated costs: Clients may pay higher fees or rates due to the kickbacks.

  • Unethical practices: Kickbacks can incentivize agents to prioritize their own financial gain over the best interests of their clients.

  • Violations of law: Kickbacks often violate laws such as the Real Estate Settlement Procedures Act (RESPA), which prohibits unearned fees and kickbacks in real estate transactions.


Would you like to learn more about Real Estate? Have you ever wanted to become a New Jersey Real Estate Salesperson License holder? Want to know more about being a New Jersey Licensed Real Estate Agent? Click on the link for the schedule of our upcoming classes for Real Estate: tocrres.com




Two modern homes with wood and glass accents
Two modern homes with wood and glass accents

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jone martin
jone martin
9월 11일

Kickback is a unique name, we can use it in terms of profit, In which the agent receives benefits from real estate services.


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