Minnesota License Law

A Minnesota real estate brokerage that wants to refer clients to an affiliated title company must comply with RESPA by:

APaying a portion of the title fees back to clients
BProviding a written Affiliated Business Arrangement (AfBA) disclosure and allowing clients to choose other providers✓ Correct
CObtaining approval from the state insurance commissioner
DEnsuring the title company is licensed in all 50 states

Explanation

RESPA requires an Affiliated Business Arrangement disclosure when a settlement service provider refers business to a company with which it has an ownership or financial interest. The disclosure must be provided, the referral must be optional (clients may choose alternative providers), and the referring party may not require use of the affiliate.

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