Yes—realtors can accept gifts from clients in many situations, especially when the gift is a genuine thank-you from a client to a real estate agent after a closing. The big compliance line is this: a gift is generally fine when it’s not tied to an exchange for refer business, not a hidden fee or payment for services, and not something that violates brokerage policy or the rules of state and local associations. The risk goes way up when the “gift” involves a settlement service provider (like a lender, title company, title agent, or attorneys) and is connected to referrals in real estate transactions—that can trigger RESPA concerns and, in serious cases, civil penalties. When in doubt, keep it simple: disclose it to your broker, confirm restrictions, and avoid anything that looks like pay-to-play.

For more details, keep reading.

Can Realtors Accept Gifts From Clients? (The Practical Rule Most People Miss)

When someone asks can realtors accept gifts from clients, they’re usually thinking about a closing gift, holiday gift, or a small gesture like a card and coffee. Most of the time, that’s perfectly normal.

The key question isn’t “Are gifts allowed?” It’s “What is the gift really for?”

A gift is typically acceptable when:

• it’s voluntary (not required by the agreement)

• it’s not promised in advance as part of the deal

• it’s not meant to influence how the agent handles the transaction

• it’s not disguising compensation for real estate services

A gift starts looking like a problem when it functions like a paid benefit for performance—especially if it’s offered to get special treatment, to secure future business, or to induce referrals.

Why “client to agent” gifts are usually low-risk

In a standard residential transaction, the agent’s compensation is already spelled out (usually through a listing agreement or buyer representation agreement and the MLS offer of compensation, depending on how the deal is structured). A post-closing thank-you gift from buyers is typically not part of the compensation structure, so it’s less likely to be treated as an extra fee.

Why “business to agent” gifts are higher-risk

When the gift comes from a settlement service provider—or from someone trying to become one—it can create legal exposure because of anti-kickback rules in settlement services. That’s where many agents get tripped up, even when they meant well.

Client Gifts vs Referral “Gifts”: Where RESPA and Settlement Services Enter the Picture

This is where the topic gets real. Not every gift is the same in the eyes of the law.

What counts as a settlement service provider?

A settlement service provider is generally a person or company involved in the settlement process for a consumer mortgage loan—examples often include:

• lender / loan officer

• title company / title agent

• escrow and closing companies

• home warranty providers

• appraisal management companies (in many contexts)

• certain inspection-related services (depending on the scenario)

• attorneys when performing settlement functions (this can vary)

These parties are part of the “settlement service” ecosystem. That matters because RESPA (in broad terms) is designed to stop kickbacks for referrals.

What is a settlement service business?

People use settlement service business to describe a business that provides settlement services or is affiliated with a provider. The risk area is when anyone gives “things of value” to get referrals. Even if the item is called a “gift,” it can be treated as a referral incentive.

The main danger zone: gifts tied to “refer business”

If a lender, title company, or other provider gives an agent something of value—cash, a sporting event package, tickets, paid advertising, or covering “expenses”—and it’s tied to the agent sending them clients, that can be viewed as payment for referrals.

Common examples that raise red flags:

• “We’ll pay for your office lunch if you send us your next five deals.”

• “Here are concert tickets—keep us in mind for your buyers’ loans.”

• “We’ll cover your marketing costs if you put our logo everywhere and introduce us as your preferred provider.”

Even when there’s no written agreement, a pattern of exchanging gifts for referrals can create serious compliance issues.

Civil penalties are the part people underestimate

The reason agents and brokers take this seriously is the potential for civil penalties and enforcement consequences in consumer transactions involving federally related mortgage loans. You don’t need to be the lender or title company to get caught in the mess—agents can be involved too.

This is why brokers often have strict restrictions around accepting anything from settlement service partners.

If you’re planning to move to Western New York, or if you’re already a local resident, understanding how a settlement service provider relationship can affect gifts and referrals is just one part of your life in Western New York. For more helpful tips on real estate services, be sure to check out our latest blog on Carol Klein WNY Homes, where we cover practical guidance for buyers and sellers navigating real estate transactions, timelines, and local resources.

What Gifts Are Usually Permitted? (Reasonable, Bona Fide, and Not Tied to the Transaction)

Let’s make this practical: there are gifts and there are “gifts.”

From clients (buyers/sellers): usually fine when it’s a thank-you

Common client gifts that are typically low-risk:

• a card with a small gift card

• a bottle of wine (where permitted)

• a housewarming-type gift

• a personal thank-you basket after closing

Even then, a few guardrails help:

• don’t ask for the gift

• don’t make it a condition of service

• don’t let it change how you negotiate or advise the client

From businesses: only if it’s bona fide and not a referral reward

Some items can be acceptable when they are bona fide—meaning there’s a legitimate business purpose unrelated to referrals.

Examples that are often discussed as more defensible (depending on your brokerage and local rules):

• educational activities (training sessions with real content)

• continuing education sponsorships in a compliant format

• industry events where the value is not tied to referrals and is open/standard for attendees

But this is exactly where details matter. A “class” that’s really entertainment—or a course that’s only offered to high-referring agents—can look like a disguised thing of value for referrals.

Advertising and marketing support (the gray area)

Marketing is one of the most misunderstood parts. A settlement service provider paying for an agent’s advertising can be high risk if it functions like a referral payment.

If there’s any co-marketing, it must be structured carefully:

• clear, fair value for what’s provided

• not conditioned on referrals

• documented and compliant with applicable rules

Because this area is fact-specific, many brokerages simply prohibit it to keep agents safe.

What Do Associations and Broker Policies Say? (National Association, State and Local Associations)

Even if something might be legal in a general sense, your professional rules can still restrict it.

National association vs state and local associations

Many realtors are members of a national association and also participate in state and local associations (or local associations). These organizations often publish ethics guidance and best practices.

They may not write the law, but they can influence:

• professional standards

• arbitration/ethics complaints

• disciplinary action within the organization

So it’s smart to be aware of any member guidance around accepting gifts, especially from vendors and affiliated businesses.

Brokerage restrictions often matter more day-to-day

In practice, your broker’s rules may be the tightest standard you must follow. Common office policies include:

• requiring the agent to report gifts above a certain value

• prohibiting any gifts from settlement service providers

• limiting tickets, meals, or sporting event invites

• restricting vendor-paid expenses and events

If you’re an agent, the simplest “keep yourself safe” move is to run anything questionable through your broker in writing and keep the documentation.

Why this matters in both residential and commercial real estate

This topic comes up most in consumer residential deals because of settlement services, but commercial real estate professionals still deal with similar optics and conflicts-of-interest concerns:

• who is paying for what

• whether parties understand the incentives

• whether it affects recommendations and pricing

Good practice is consistent across both: transparency, fair value, and avoiding quid-pro-quo arrangements.