Kickback

Definition: A payment or other thing of value given in return for a referral or favorable treatment when prohibited by law. RESPA restricts referral payments for covered settlement-service business.

Example

A title provider secretly pays a broker for steering covered settlement referrals to it.

Keep the distinction clear

Not every referral fee or business payment is unlawful. Permitted brokerage referrals and payment for actual services require their own analysis; disclosure alone does not legalize a prohibited kickback.

Related terms

Affiliated Business Relationship · Compensation · Real Estate Brokerage

Keep studying

Real Estate and Loan Brokerage: Affiliated Businesses and Disclosure Questions

References: CFPB: RESPA referral fees and kickbacks

Pronunciation (US): KIK-bak (capitals show stress)

Pronunciation reference: Merriam-Webster