A mortgage company wants to sponsor a luncheon for my brokerage. Is that OK?

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03/25/2015 | Author: Editorial Staff

Can a brokerage allow a mortgage company to sponsor a luncheon that offers CE for its agents?

It depends. A mortgage company or title company sponsoring an educational event to promote its services can do so as long as the cost associated with the event doesn’t cover any of the agents’ other expenses they would otherwise have to pay, such as the cost of the CE credit. The mortgage company can’t sponsor the luncheon on the condition that it will receive referrals, either. And the company must promote its services during the event to qualify for the Real Estate Settlement Procedures Act (RESPA) advertising exemption.

Read more legal FAQs on texasrealestate.com.

Categories: Legal
Tags: legal faq, brokers and managers, respa


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The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

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