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RESPA Section 8, explained for brokers

RESPA Section 8 is the rule that scares brokers away from title revenue. Understood properly, it’s also the rule that makes compliant title ownership possible.

📅 June 19, 2026 · 6 min read

What Section 8 actually says

Two core prohibitions:

  • 8(a) — no kickbacks. You can’t give or receive a fee, kickback, or thing of value in exchange for referring settlement-service business.
  • 8(b) — no unearned fees. You can’t split a settlement-service charge unless it’s for services actually performed.

The exceptions that matter

Section 8 also lists what’s allowed, including:

  • Payments for goods or services actually furnished at fair market value.
  • Returns on ownership in an affiliated business arrangement that meets the disclosure, no-required-use, and bona-fide-return conditions.

That second exception is the doorway to compliant title ownership. The detail lives in the ABA safe harbor .

How brokers stay on the right side of it

Don’t take referral fees. Don’t require clients to use your title company. Do disclose the relationship, and earn only a bona fide return on a real ownership interest in a real company. Get marketing-service and other arrangements reviewed — see MSA vs. ABA vs. JV — and kill the common myths before they cost you.

Penalties for Section 8 violations are serious (fines and worse). This page is general education — structure any arrangement with qualified RESPA counsel.
Common questions

Frequently asked questions

What does RESPA Section 8 prohibit?
Giving or receiving anything of value for referrals of settlement-service business (8(a)), and splitting fees that weren’t earned by services actually performed (8(b)).
Does Section 8 ban owning a title company?
No. It bans referral kickbacks and unearned fees, but expressly allows returns on a bona fide ownership interest in an affiliated business that meets the disclosure and no-required-use conditions.
What are the penalties for a RESPA Section 8 violation?
They can include significant civil and criminal penalties, treble damages, and enforcement actions — which is why compliant structure and counsel matter.
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