A title company hosts a holiday party and invites members of the real estate community from which it has received and to which it has referred business throughout the previous year. Food and drinks are served at the party. The actions of the hosts and attendees are:
A. Legal since it is simply expressing and accepting appreciation for the year's business
B. Illegal since items of value (food & drink) are being provided to actual or potential referral sources rendering both the hosts and guests in violation of RESPA
C. Illegal since items of value (food & drink) are being provided to actual or potential referral sources rendering the hosts in violation of RESPA
D. Illegal since items of value (food & drink) are being provided to actual or potential referral sources rendering the guests in violation of RESPA
Answer:B
A title company hosts a holiday party and invites members of the real estate community from which it has received and to which it has referred business throughout the previous year. Food and drinks are served at the party. The actions of the hosts and attendees are:
A. Legal since it is simply expressing and accepting appreciation for the year's business B. Illegal since items of value (food & drink) are being provided to actual or potential referral sources rendering both the hosts and guests in violation of RESPA C. Illegal since items of value (food & drink) are being provided to actual or potential referral sources rendering the hosts in violation of RESPA D. Illegal since items of value (food & drink) are being provided to actual or potential referral sources rendering the guests in violation of RESPA