33-25-401. Prohibited practices -- referrals -- splitting charges -- exemptions.
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/mt/title-33/chapter-25/part-4/33-25-401·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
33-25-401 . Prohibited practices -- referrals -- splitting charges -- exemptions.
(1)Except as provided in subsection (2), a person may not:
(a)give or accept a fee, rebate, or thing of value pursuant to an agreement or understanding that title insurance business will be referred to a title insurance producer; or
(b)give or accept a portion, split, or percentage of a charge made or received for title insurance business in connection with a transaction involving real property in this state, other than for services actually performed.
(a)A person may pay a return on an investment, based on a percentage of an ownership interest in a title insurance agency, if:
(i)at or prior to the time of a referral, a disclosure of the existence of the arrangement is made to the person being referred and, in connection with the referral, the person is provided a written estimate of the charge or range of charges generally made by the title insurance producer to which the person is referred; and
(ii)the person is not required to use a particular insurance producer.
(b)The following arrangements are not a violation of subsection (2)(a)(ii):
(i)an arrangement that requires a buyer, borrower, or seller to pay for the services of an attorney, credit reporting agency, or real estate appraiser chosen by a lender to represent the lender's interest in a real estate transaction; or
(ii)an arrangement by which an attorney or law firm represents a client in a real estate transaction and issues or arranges for the issuance of a policy of title insurance in the transaction directly as insurance producer or through a separate corporate title insurance agency that may be established by that attorney or law firm and operated as an adjunct to the attorney's or firm's law practice.
(c)Failure to disclose a controlled business relationship is not a violation of subsection (2)(a)(i) if the failure was not intentional and resulted from a bona fide error, proven by a preponderance of the evidence.
(3)This section does not prohibit:
(a)the payment of a fee to an attorney for services actually rendered or by a title insurance producer for services actually performed in the issuance of a title insurance policy; or
(b)payment of a bona fide salary, compensation, or other payment for goods or facilities actually furnished or for services actually performed.