Q: I am a broker and would like to split the cost of a one page advertisement on Zillow with a mortgage lender. Is this ok?
A: Maybe but caution is advisable. Although the Real Estate Settlement Provider Act (RESPA) prohibits payments for the referral of business between brokers and lenders, HUD allowed joint advertising as long as each company paid a pro-rata share of the advertising costs and the ad costs were reasonably related to the value of the goods or services received. CFPB is now enforcing RESPA and has yet to issue guidance on this issue. However, caution is advisable in light of the CFPB’s ongoing investigations on this matter. Law: Real Estate Settlement Provider Act (RESPA) 12 U.S.C. § 2607
Date: August 2017
Q: I’m placing an advertisement in the newspaper. Do I have to include my telephone number in the ad?
A: No. You are required to identify yourself as a licensed broker or salesperson, and, for a salesperson or associate broker, the name or trade name of the qualifying broker or company under whom you are licensed. Generally, the name or trade name of your qualifying broker or company is sufficient to identify you as a licensed broker or salesperson.
Law: Ala. Code § 34-27-36(a)(6) and (15)
Date: August 2017
