                                 CODE OF VIRGINIA

PROHIBITION AGAINST PAYMENT OR RECEIPT OF TITLE INSURANCE KICKBACKS, REBATES,
COMMISSIONS AND OTHER PAYMENTS; PENALTY (§ 38.2-4614)

A. 1. No person selling real property, or performing services as a real estate
agent, attorney, or lender incident to any real estate settlement or sale, shall
pay or receive, directly or indirectly, any kickback, rebate, commission, thing
of value or other payment pursuant to any agreement or understanding, oral or
otherwise, that business incident to the issuance of any title insurance be
referred to any title insurance company, title insurance agency or agent. No
title insurance company, title insurance agency or agent shall give any such
kickback, rebate, commission, thing of value or other payment pursuant to any
such agreement or understanding. For purposes of this section, &#8220;thing of
value&#8221; means any payment, advance, funds, loan, service or other
consideration. This section shall not prevent any federally insured lenders,
holding companies to which they belong, or subsidiaries of such lenders or
holding companies from being licensed by the Commission as title insurance
agents or agencies and receiving commissions from the sale of the title
insurance policies in their capacities as title insurance agents or agencies.

   2. Nothing in this section shall be construed to prohibit (i) payments of sums
   spent for bona fide advertising and marketing promotions otherwise permissible
   under the provisions of the Real Estate Settlement Procedures Act, 12 U.S.C.
   &#xA7; 2601 et seq. or (ii) providing educational materials or classes,
   wherein such materials or classes are provided to a group of persons or
   entities pursuant to a bona fide marketing or educational effort.

B. Any person who knowingly and willfully violates this section shall be guilty
of a misdemeanor and subject to a fine of not more than $1,000 for each
violation. Any criminal charge brought under this section shall be by indictment
pursuant to Chapter 14 (&#xA7; 19.2-216 et seq.) of Title 19.2.

C. No person shall be in violation of this section solely by reason of ownership
in a title insurance company, title insurance agency or agent as defined in this
chapter, wherein such person receives returns on investments arising from the
ownership interest. In addition, this section shall not prohibit (i) the payment
to any person of a bona fide salary or compensation or other payment for
services actually performed for the business of the title insurance company,
title insurance agency or agent or (ii) any employer&#8217;s payment to its own
bona fide employees for referrals. Any employer&#8217;s payment to its own
employees for the referral of title insurance business shall be subject to the
requirements of subdivision B 8 of &#xA7; 38.2-1821.1.

HISTORY: 1975, c. 184, § 38.1-733.1; 1986, c. 562; 1987, c. 174; 1993, c. 147;
1996, c. 883; 2002, c. 599.