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.