Is it legal for a title company to pay a broker for services rendered?

The legal framework surrounding payments from title companies to real estate brokers is guided by anti-kickback legislation, particularly the Real Estate Settlement Procedures Act (RESPA). Under RESPA, any form of compensation for referrals or services that is not compliant with established guidelines can constitute a violation.

When considering whether a title company can pay a broker, it's essential to realize that such payments must be fully disclosed and must pertain to legitimate services performed. If a title company pays a broker simply for the referral of business, without any substantive service being provided, this action would be deemed illegal under RESPA and other related laws.

Therefore, without proper disclosures and adherence to legal stipulations surrounding compensation practices, it is indeed against the law for a title company to pay a broker simply for services not rendered in a compliant manner, which aligns with the answer given. The refusal to allow such practices helps maintain transparency and fairness within real estate transactions.