California Real Estate Law Suit - Kickback Scheme

Well you may have already seen this article but if not I suggest you take a look.

HUD is suing California hazard reporting company and four real estate brokerages in kickback scheme. Basically real estate agents are not allowed to recieve kickbacks and unerned fees in the home buying process. This is a violation of RESPA and was enacted in 1974 to protect the consumer.

The lawsuit was brought up against these companies for creating sham companies designed to generate illegal kickbacks in violation of the Real Estate Settlement Procedures Act (RESPA).

The companies involved are:

• Property I.D. Corporation - a hazard repoting company in California

Real Estate Brokerages named in the suit are:

• Realogy Corporation (formerly known as Cendant Corporation)
• NRT/Coldwell Banker Residential Brokerage Corporation
• Mason-McDuffie Real Estate (doing business as Prudential California Realty)
• Pickford Realty Ltd (doing business as Prudential California Realty)

Click the link below to see the full story.
http://www.hud.gov/news/release.cfm?content=pr07-071.cfm


I am pretty sure this one is going to land a few people in jail.