6.1-2.13:1 - (Repealed effective October 1, 2010) Prohibition against payment or receipt of settlement services ...
§ 6.1-2.13:1. (Repealed effective October 1, 2010) Prohibition againstpayment or receipt of settlement services kickbacks, rebates, commissions andother payments; penalty.
A. No person selling real property, or performing services as a real estateagent, attorney, lay settlement agent or lender incident to any real estatesettlement or sale, shall pay or receive, directly or indirectly, anykickback, rebate, commission, thing of value, or other payment pursuant toany agreement or understanding, oral or otherwise, that business incident toservices required to complete a settlement be referred to any person. Forpurposes of this section, "thing of value" means any payment, advance,funds, loan, service or other consideration.
B. Nothing in this section shall be construed to prohibit (i) payments orsums spent for bona fide advertising and marketing promotions otherwisepermissible under the provisions of the Real Estate Settlement Procedures Act(12 U.S.C. § 2601 et seq.) or (ii) providing educational materials orclasses, wherein such materials or classes are provided to a group of personsor entities pursuant to a bona fide marketing or educational effort.
C. No person shall be in violation of this section solely by reason ofownership in a settlement service provider as defined in this chapter,wherein such person receives returns on investments arising from theownership interest. In addition, this section shall not prohibit (i) thepayment to any person of a bona fide salary or compensation or other paymentfor services actually performed for the business of the settlement serviceprovider or (ii) any employer's payment to its own bona fide employees forreferrals of mortgage loan or insurance business. Any employer's payment toits own employees for the referral of insurance business shall be subject tothe requirements of subdivision B 8 of § 38.2-1821.1.
D. Any person who knowingly and willfully violates this section shall beguilty of a misdemeanor and subject to a fine of not more than $1,000 foreach violation. Any criminal charge brought under this section shall be byindictment pursuant to Chapter 14 (§ 19.2-216 et seq.) of Title 19.2.
(1996, c. 883; 1999, c. 109; 2002, c. 599.)