Oregon License Law

In Oregon, what is an 'affiliated business arrangement' (ABA) in real estate and what disclosure is required?

AA business where two brokerages share office space; no disclosure required
BA business relationship where a real estate company has an ownership interest in or receives compensation from a settlement service provider (title, escrow, lender); disclosure under RESPA is required✓ Correct
CAn arrangement between a principal broker and their affiliated agents; disclosed in the listing agreement
DA marketing partnership between Oregon REALTORS; no RESPA disclosure needed

Explanation

Under RESPA, affiliated business arrangements (ABAs) occur when a settlement service provider (real estate broker, lender, title company) has an ownership interest in or receives compensation from another settlement service provider to whom they refer business. ABAs must be disclosed in writing to consumers, and referrals to ABAs must be voluntary — the consumer cannot be required to use the affiliated business.

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