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DictionaryThe buying process
An affiliated business arrangement is when someone who can refer you to a closing service, such as your real estate agent or your lender, is affiliated with or owns part of the company it refers you to, and sends you there. Federal law (RESPA) allows it if you get a written notice on a separate page explaining the relationship and estimating what the company charges; if you are not required to use it, with some exceptions; and if the only thing they earn is a return on ownership, not a payment per referral.
In Spanish it is
Arreglo de negocios afiliados
Also written as: affiliated business disclosure · controlled business arrangement
According to the CFPB, it pays to shop around.
Jesús's agent recommends a title company and hands him a page saying the agent's office owns part of it. Jesús gets quotes from two other companies before deciding.
You will rarely see this word alone. These are the ones that show up with it on the same papers.
A HUD-approved housing counselor can walk you through it. Agencies usually charge little or nothing, many work in Spanish, and they do not sell you anything.
We sum up what these official sources say, in plain words. We add no rules they do not state; when a rule changes, the definition and its date change.
