Affiliated business disclosure language 2025

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Affiliated Business Arrangements, or ABAs, are a way for real estate brokers and/or agents to legally receive a share of the profits as a type of referral bonus from mortgage financing and/or title insurance.
What Are Affiliated Companies? Companies are affiliated when one company is a minority shareholder of another. In most cases the parent company will own less than a 50% interest in its affiliated company. Two companies may also be affiliated if they are controlled by a separate third party.
For example, a real estate entity that owns an interest in an affiliated title entity may receive dividends or distributions from the profits of the affiliated title entity, but such dividends or distributions must be based solely on ownership percentage and not on volume of referrals or some other basis.
Under federal RESPA guidelines (Real Estate Settlement and Procedures Act), the real estate broker or agents that are participating in the ABA MUST have you sign a disclosure notifying you that they have a financial interest in the affiliated company and may receive financial benefit for your use of the services of the
For a business, a disclosure statement implies the information that the business is legally obliged to provide to the public by the land laws. A business has to follow compliance with a variety of disclosure requirements which relate mainly to the following areas: Consumer protection. Companies Act regulations.
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