This does not mean, however, that gifts are entirely prohibited. Lax says that it can be advantageous to use Regulation X’s marketing exception.
“Do not be afraid to give holiday gifts, but stay within the guideline that is laid out in Regulation X,” Lax said. The marketing exception contained in Regulation X states that “Section 8 of RESPA permits … normal promotional and educational activities that are not conditioned on the referral of business and that do not involve the defraying of expenses that otherwise would be incurred by persons in a position to refer settlement services or business incident thereto…”
Lax said that provision raises three issues.
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