Agents push warranties at closing for $50-$100 referral commissions

Home warranty companies pay real estate agents $50-$100 per policy sold, creating a systemic conflict of interest where agents recommend warranties as part of the closing process without disclosing the financial incentive. First-time homebuyers trust their agent's recommendation and sign up for coverage that may have severe exclusions and low payout caps, believing they are getting meaningful protection for their new home. This persists because RESPA enforcement against warranty referral kickbacks is minimal, the payments are structured as 'marketing fees' to skirt the law, and the buyer only discovers the coverage is inadequate months later when they file their first claim.