BrokerageIndustry News

American Home Shield stands behind brokers in legal fights

Warranty company promised to indemnify Texas broker against RESPA claims
Published on Mar 21, 2012 | Updated on Apr 23, 2013

Editor's note: This is the second in a two-part series on regulations governing the marketing of home warranties by real estate brokers and agents. Part one, "Settlement reached over alleged home warranty kickbacks to brokers," examines regulators' recent interpretations of the Real Estate Settlement Procedures Act (RESPA), which define how home warranty companies may pay real estate brokers and agents, and describes settlements American Home Shield Corp. has reached in two class-action lawsuits. In settling two lawsuits alleging that it paid illegal kickbacks to real estate brokers to market its home warranties, American Home Shield Corp. has been careful to protect real estate brokers and agents from liability. American Home Shield -- the nation's largest provider of home warranties -- has denied that the payments it's made to real estate brokers who market its products violated the Real Estate Settlement Procedures Act, or RESPA.The company admitted no wrongdoing...

Comments