Casa Academy

Reviewed by Casa Academy and updated July 29, 2026 using the current DBPR checklist and Pearson VUE scheduling guidance.

Kickback

A kickback in real estate is an illegal or undisclosed payment given to induce referrals or favorable treatment in a transaction, violating RESPA anti-kickback rules for federally related settlements and state license laws on secret commissions.

Exam context

Choose kickback when undisclosed payment trades referral of settlement service. Lawful referral fees between brokers with disclosure differ from RESPA violations. Commingling is separate trust account misconduct.

RESPA and settlement services

The Real Estate Settlement Procedures Act prohibits giving or accepting fees for referrals of settlement business such as title, appraisal, or insurance unless a lawful referral arrangement is disclosed. Marketing service agreements must provide real services at fair market value, not disguised kickbacks.

License discipline

Agents who receive hidden payments from inspectors, lenders, or contractors for steering clients face fines, license suspension, and RESPA civil liability. All compensation must flow through disclosed brokerage agreements. Referral fees between licensed brokers may be legal when properly documented under state law.

Examples

  • Title company inducement

    A lender pays an agent $500 per closed loan for sending buyers to a preferred title affiliate without RESPA-compliant disclosure. Regulators treat the payment as an illegal kickback.

  • Inspector rebate

    A home inspector rebates part of the fee to the referring agent outside the brokerage ledger. Undisclosed rebates for referrals violate RESPA and state ethics rules.

Keep studying

Practice kickback questionsEnroll in pre-licensing

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