What is an Affiliate and Why Should You Consider One?
An Affiliated Business Arrangement (ABA) exists when two or more entities, usually a real estate company and a settlement service agency, in the position to refer sales participate in a business relationship with each other. A general ABA typically uses the joint venture structure, in which the real estate company refers business to settlement service agency, such as title and closing. It’s an arrangement in which two or more entities are in a position to refer business, like closing services, have an affiliate relationship with each other. Either party refers business to the service provider or influences the selection of that provider.
