Common use of Multiple Services Clause in Contracts

Multiple Services. When a person in a position to refer settlement service business, such as an attorney, ▇▇▇▇- ▇▇▇▇ lender, real estate broker or agent, or developer or builder, receives a payment for providing additional set- tlement services as part of a real estate transaction, such payment must be for services that are actual, necessary and distinct from the primary services pro- vided by such person. For example, for an attorney of the buyer or seller to re- ceive compensation as a title agent, the attorney must perform core title agent services (for which liability arises) separate from attorney services, including the evaluation of the title search to determine the insurability of the title, the clearance of underwriting objections, the actual issuance of the policy or policies on behalf of the title insurance company, and, where cus- tomary, issuance of the title commit- ment, and the conducting of the title search and closing.