(2) A person who makes a referral: (within the meaning of Article 1024.2, “necessary use”), a person is required to use a specific provider of settlement services or commercial incidents, unless that person is a lender to be paid for the obligation of a buyer, borrower or seller, for the benefits of a lawyer, a lender manager or a real estate controller chosen by the lender to represent the lender`s interest in a real estate transaction. , or unless that person is a law firm or law firm for the intermediation of property insurance for a client, directly as an agent or by a separate insurance agency for corporate titles, which can be operated as a complement to the law firm of the lawyer or law firm as part of the client`s representation in a real estate transaction. The person who is able to evict the settlement services refers to the real estate agent or broker, lender, mortgage broker, contractor or developer, lawyer, titled company, title agent or any other person who derives a significant portion of his or her gross income from the provision of settlement services. (B) Commercial credits, advances and capital or equity contributions between entities with an affiliate relationship (in all directions) are not prohibited, as long as they are intended for ordinary commercial purposes and are not a transfer fee for settlement services or unearned fees. (iii) Neither the mere marking of a value, nor the fact that it can be calculated on the basis of a business or company organization document or a franchise agreement, determine whether it is a good faith return derived from a shareholding or a franchise relationship. Whether such a performance is a value is determined on a case-by-case basis by analysis of the facts and circumstances. The affiliation relationship refers to the relationship between companies in which one business has effective control over the other by partnership or other agreement or is controlled by a third entity under common control with the other, or where a business is a joint entity linked to another parent entity by an identity of the property. a) General. A related trade agreement is defined in Section 3.7 of reSPA (12 U.C 2602(7) ]. (iv) A return on a franchise relationship may be a payment to a franchisee or franchisee, but it does not include any payment not based on the franchise agreement, nor does it include any payment that is variable based on the number or amount of the franchisor`s or franchisee`s recommendations, or based on a franchise agreement tailored to a number or quantity of prior referrals by the franchisee. A franchise agreement should not be designed to isolate kickbacks or transfer fees. (a) any payment that has no apparent commercial accounting motive, with the exception of the distinction between the recipients of payments on the basis of the amount of their actual, estimated or expected referrals; 1.
The person making any referral has provided any person whose activity is characterized as supporting, a written statement of disclosure, in the form of a declaration of disclosure of trade agreements under Schedule D of this part, of the nature of the relationship (which explains ownership and financial interest) between the settlement service provider (or commercial law incidents) and the person making the referral , and an estimated fee or a number of fees that are usually charged by that supplier (which uses the cargo using the same terminology, in practice, as section L of the HUD-1 invoice).