Which of the following practices does RESPA permit?

The Real Estate Settlement Procedures Act (RESPA) establishes rules to ensure transparency and fairness in real estate transactions, focusing on the disclosure of settlement costs to consumers. Among the practices mentioned, sharing commissions among cooperating brokers or multiple listing services (MLSs) is permitted under RESPA. This practice is integral to the functioning of real estate markets, allowing brokers to collaborate, share listings, and effectively serve clients.

When brokers cooperate and share commissions, it enhances the chances of property sales and fosters a competitive market which ultimately benefits consumers through increased choices and better service. Cooperation among brokers is fundamental in real estate practices, as it encourages collaboration to facilitate transactions, ensuring that buyers and sellers are supported by multiple agents.

In contrast, practices such as payment of referral fees among unlicensed agents, kickbacks to lenders, or fee splitting among sellers, are restricted or prohibited under RESPA as they could lead to conflicts of interest and increased costs to consumers without adequate disclosure. Therefore, the option related to sharing commissions aligns with RESPA’s intent to promote transparency and ethical practices in real estate transactions.