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home warranty cost alabama S. Department of Housing and Urban Development. The letter suggested that brokers and agents could be violating the Real Estate Settlement Procedures Act if they accepted a fee for selling home warranties. That’s because referral fees for “settlement services” are banned under the federal law, and confusion has reigned ever since over the acceptable conditions for receiving compensation. Even a clarification letter from HUD two years later, which said warranty sales were permissible as long as sales efforts constituted more than simply referrals and fees were reasonable, did not stem the confusion, since the follow up guidance continued to suggest that warranties were a “settlement service. ” The conflicting interpretations led to lawsuits, including a class action case against American Home Shield.

He just wanted the AC fixed.

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