What Every Title Agency Should Know About RESPA Compliance in Workshare Agreements

For many agencies, the idea of sharing title work across state lines sounds like an administrative shortcut. But without the right compliance framework, these “handshake” deals can quickly turn into regulatory nightmares. That’s why understanding the Real Estate Settlement Procedures Act (RESPA) is not just important — it’s essential.

Why RESPA Matters

RESPA is designed to protect consumers by prohibiting kickbacks, unearned fees, or referral arrangements that inflate costs. This law applies directly to how agencies collaborate and share revenue. If agencies are splitting fees without providing meaningful services, regulators can view it as a RESPA violation. The penalties are steep, including fines, restitution, and even loss of licensing.

The Compliance Gap

Historically, agencies have referred out-of-state transactions informally, often with vague agreements or side payments. These arrangements may seem convenient, but they leave agencies exposed. Without clear documentation and proof of services rendered, it’s difficult to demonstrate compliance if challenged by regulators.

The Right Way to Workshare

To operate within RESPA, agencies must structure their agreements so that:

• Each party performs actual services in connection with the transaction.
• Fees are proportional to the services performed.
• Documentation is clear and auditable, showing who did what and why they were paid.

In other words, referrals alone are not enough. Agencies must actively participate — whether through administrative coordination, communication with clients, or other legitimate services.

Compliance by Design

Zynova was built with this challenge in mind. Instead of leaving agencies to piece together informal agreements, the platform embeds compliance directly into its workflows. Every referral, every administrative task, and every remittance is logged, transparent, and structured to meet RESPA standards.

Agencies benefit in two ways: they can expand nationally without fear of violating the law, and they gain peace of mind knowing their processes are auditable and regulator-ready.

The Bottom Line

Compliance isn’t optional — it’s the foundation for sustainable growth. Title agencies that embrace structured, RESPA-compliant networks will not only protect themselves but also earn the trust of lenders, brokers, and consumers.

With Zynova, compliance isn’t a burden — it’s built into the very fabric of collaboration.