Does it make sense for a real estate brokerage to refer their clients to a title or mortgage company which they share part ownership of? An Affiliated Business Arrangement is when a real estate company owns part of a related business- like a title or mortgage company. Perfectly legal as long as the real estate broker discloses this ABA to the buyer or seller in writing. But does it serve the best interest of a Denver or Boulder real estate consumer to work with a title or mortgage company if their real estate agent/agency will benefit financially from this arrangement? In essence, the agent is referring business to him/herself. Is it possible that this type of referral “dumbs down” the level of service given by an ABA title or mortgage company? Some could argue that a title company in this type of situation could continue to get lots of business even though their level of service is unimpressive or completely lacking. Be sure to ask your agent if they have any affiliated business relationships and discuss if it makes sense for you to give that company your business. Email bob@realasave.com if you have any questions about Dever or Boulder real estate.
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