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Kickback

Kickback in the context of real estate transaction refers to an illegal payment intended as a compensation for referral for real estate settlement services. The kickback can be in the form of money, a gift, credit, or anything of value.

§ 1024.14 of the The Code of Federal Regulations Part 1024 (Regulation X) prohibits kickbacks: No person shall give and no person shall accept any fee, kickback or other thing of value pursuant to any agreement or understanding, oral or otherwise, that business incident to or part of a settlement service involving a federally related mortgage loan shall be referred to any person.

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