                                 CODE OF VIRGINIA

PROHIBITION AGAINST PAYMENT OR RECEIPT OF SETTLEMENT SERVICES KICKBACKS,
REBATES, COMMISSIONS, AND OTHER PAYMENTS (§ 55.1-1009.1)

A. No person selling real property, or performing services as a settlement
agent, lay real estate settlement agent, 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 services required to complete a settlement be referred to
any person.

B. Nothing in this section shall be construed to prohibit:

   1. Expenditures for bona fide advertising and marketing promotions otherwise
   permissible under the provisions of the federal Real Estate Settlement
   Procedures Act (12 U.S.C. &#xA7; 2601 et seq.);

   2. The provision of educational materials or classes, if such materials or
   classes are provided to a group of persons or entities pursuant to a bona fide
   marketing or educational effort;

   3. The payment to any person of a bona fide salary or compensation or other
   payment for services actually performed for the business of the settlement
   service provider; or

   4. An employer&#8217;s payment to its own bona fide employees for referrals of
   mortgage loan or insurance business. An employer&#8217;s payment to its own
   employees for the referral of insurance business shall be subject to the
   requirements of subdivision B 8 of &#xA7; 38.2-1821.1.

C. No person shall be in violation of this section solely by reason of ownership
in a settlement service provider, where such person receives returns on
investments arising from the ownership interest, provided that such person
discloses in writing to the consumer an ownership interest in those settlement
services, including its ownership percentage in the settlement service provider
pursuant to the requirements of &#xA7; 55.1-905.

HISTORY: 2020, c. 700.