California real estate disclosure laws California Real Estate Disclosures | Page 60

referring business to the lender or service provider. Written agreements
between real estate brokers to cooperate and share customary and reasonable
commissions may be acceptable if limited to compensation for the sale
transaction.
RESPA Regulations require that third parties providing settlement services
in loan transactions subject to this law be reasonably compensated in relation
to the value of the services rendered and of the goods and facilities provided.
Generally, when a real estate broker receives customary and reasonably
earned commissions/fees for services rendered and/or reimbursements for
costs and expenses actually incurred, it would neither be in violation of
RESPA nor California law as long as such commissions/fees, costs and
expenses are fully disclosed. This includes any compensation the broker
receives directly or indirectly from the lender as well as from the borrower.
The HUD-1 Settlement Statement must also show any direct or indirect
payments by the l