THE DANGERS OF AFFILIATED BUSINESS ARRANGEMENTS FOR REALTORS:

System under affiliates:

  • Referral based on payments to agent/broker.
  • Realtor loses independence.
  • Realtor appears to have a conflict of interest.
  • If title company service is bad it reflects on the real estate agent and broker.
  • Agent subject to class action litigation for “sham affiliates.”

ADVANTAGES OF AN INDEPENDENT TITLE COMPANY:

  • Agent directs business based solely on interest of customer in receiving the best service for best price.
  • Agent maintains his/her independence.
  • Agent doesn’t risk class action litigation based on sham affiliates.
  • Agent maintains independence as a self-employed individual.