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Sheppard Mullin Richter & Hampton LLP | USA | 15 Jul 2009

Federal District Court in 11th Circuit expands scope of RESPA Section 8(b)

In a memorandum opinion, a United States District Court for the Northern District of Alabama has held that a real estate broker that charges its customers a percentage based commission and a separate administrative brokerage commission of $149 that is not shared with its sales agents violates Section 8(b) of the Real Estate Settlement Procedures Act (RESPA), because the additional $149 fee was not for services actually performed.

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