RE/MAX is not subject to federal real estate law because it is not a real estate broker, according to a company official quoted in a story on Inman News.

The story reports on RE/MAX International Inc. suing First American Residential Group Inc. over First American's decision to pull out of an agreement under which it paid RE/MAX $600,000 a year for the exclusive right to market its title insurance and related services to RE/MAX franchises and agents.

Inman reported that Erin Toll, director of the Colorado Division of Real Estate, is looking into whether the agreement violated the federal Real Estate Settlement Procedures Act, which prohibits kickbacks or payments made in exchange for business referrals.

But RE/MAX Chief Counsel and Senior Vice President Geoff Lewis said his company was not subject to the law because it is a marketer, seller and servicer of franchises, not a real estate broker or provider of settlement services, according to the story.

Lewis told Inman that RE/MAX has marketing agreements with 123 companies that want to pitch their services to more than 4,000 RE/MAX franchisees.

"In essence, they are essentially buying a mailing list from us," he said. "We don't control those franchises, or have any way to require who they do business with."