I was wondering if anyone knows the rules about a real estate agent requiring all title work be sent to the title company owned by the real estate company. We called the agent and asked what title co. they would like to use and they stated they wnated to use the title companywith the same name as their real estate brokerage. We stated that we had never used that company and gave a list of companies that we had a relationsip with. Later we got a call from the title company saying that we had to use them for this deal. I thought that this kind of strong arming was illegal and that it was borrower’s choice. Could anyone offer me an idea of what respa says about this?
controlled business arrangements
Written By: admin
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Sep•
27•10
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Section 3500.15(b) sets out the three conditions of the controlled business arrangement exception. The first condition concerns the disclosure of the relationship. The rule provides that the person making the referral must provide the consumer with a written statement, in the format set out in appendix D to part 3500. This statement must be provided on a separate piece of paper. The referring party must give the statement to the consumer no later than the time of the referral. 24 CFR 3500.15(b)(1).