Disclosure of Fees and Compliance with RESPA
HomeTraq has gone to great efforts to comply with the Real Estate Settlement Procedures Act in that it ensures there are no improper kickbacks and borrowers are not steered towards agents, lenders or other settlement servicers.
Real estate agents who sign up with HomeTraq are randomly selected based upon the then-present availability and proximity at the time of the actual submission of the request and/or the time desired for the showing. Importantly, HomeTraq makes no recommendations about any agents and the site has no exclusivity or other limits on how many real estate brokers can join. HomeTraq is open to all brokers so long as they meet certain minimum standards and are willing to agree to HomeTraq’s terms and conditions. Further, the borrower has no obligation to work with an agent that shows a property.
The fee for using HomeTraq is $25, of which $20 is paid to the agent performing the showing. HomeTraq keeps $5 in connection with and as compensation for the use of its technology and platform. In accordance with its status as a licensed real estate broker, HomeTraq requires that the brokers that sign up with it, enter into cooperative broker agreements. Thus, if a network broker is involved in a transaction, HomeTraq keeps a portion of the commission pursuant to a cooperative brokerage agreement in accordance with RESPA.
HomeTraq allows lenders to pay the $25 fee on behalf of the borrower. Again, there is no obligation that the borrower must use that lender, and HomeTraq makes no recommendation of or referral to a lender. No money is paid to any lender by HomeTraq and any money paid by the lenders to HomeTraq is on behalf and for the benefit of the consumer.
