Regulators Investigate Real-Estate Brokerage Deals

CBS 4 Denver (04/21/08)
Colorado Division of Real Estate director Erin Toll is probing whether major property brokerages in the state received kickbacks from title insurers. Toll says the investigation was triggered by an $1.35 million marketing pact between Re/Max International and California-based First American Residential Group, which she became aware of as the result of an anonymous complaint. At issue is the possibility that franchisee owners were bullied into using First American's services, with the threat of being denied sales leads or vacation points if they did not. According to Toll, the arrangement is "highly suspect;" however, she has not determined any wrongdoing at this point.