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Joint Ventures & Affiliated Business with Conestoga

Affiliated Business Arrangements/Joint Ventures

Affiliated Business Arrangements and joint ventures continue to thrive in the title insurance business. These ventures can create additional profit centers for realtors, mortgage brokers, lenders and builders/developers. 


At Conestoga Title, we have combined our traditional experience in real estate and legal matters to advise you if you’re planning to enter into Affiliated Business Arrangements. 

An Affiliated Business Arrangement (AfBA) occurs when a person or company positioned to refer real estate settlement services also has what is called an affiliate relationship with – in other words, a direct beneficial ownership interest in, an entity to which settlement business is referred.

This could be a joint venture title or mortgage entity. When properly organized and run in accordance with an appropriate regulatory framework, this joint venture can rely on and utilize the experience of their business affiliates, while producing a revenue source for them. The revenue source arises through their ownership interest in the entity, and is a source that wouldn’t be available otherwise. 

Providing Guidance for Affiliated Business Arrangements and Joint Ventures 

At Conestoga Title, our regional representatives provide guidance to our agents as new opportunities are considered. 

Our experienced staff provides:

  • Preparation of financial pro-formas for potential new agencies

  • Meetings with potential joint venture partners

  • Guidance with RESPA requirements and state regulations

  • Operational support for new ventures

  • Problem solving assistance for existing entities


In addition, we can advise as to whether or not a proposed arrangement actually constitutes an Affiliated Business Arrangement, as well as offering advice concerning regulatory requirements. 

Our operational support extends to assistance with the varied tax and corporate aspects involved in forming and organizing a proposed venture; and we can advise in regard to financing the venture as well. 

Among the pro-formas we can assist with are negotiating and drafting the joint venture or other governing agreement; and ancillary venture agreements. 

We understand the regulatory, corporate, and business challenges associated with Affiliated Business Arrangements, and we offer the experience and knowledge necessary to assist in negotiating these challenges.

Why Conestoga Title?

Headquartered in Lancaster, Pennsylvania, Conestoga Title Insurance Co. is well known for our comprehensive title insurance services, which we offer through a network of experienced, qualified independent agents and approved attorneys. Founded in 1973, we offer you skilled expertise you can count on.

Ready to learn more? Contact us at Conestoga Title today!

Frequently Asked Questions

What is RESPA?

The Real Estate Settlement Procedures Act or RESPA offers consumers improved disclosures of settlement costs, helping to reduce closing costs by eliminating referral fees and similar costs. Signed into law in 1975, it provides complete settlement cost disclosures to homebuyers and sellers; it is now a federal statute, designed to eliminate any abusive practices in the processes of real estate settlement, prohibiting kickbacks, and limiting use of escrow accounts. In other words, brokers and agents participating in an Affiliated Business Arrangement must notify consumers that they have a financial interest in the affiliated company, as well as requesting your authorization to order title insurance.

What is the purpose of an Affiliated Business Arrangement?

Affiliated Business Arrangements allow real estate brokers and/or title agents to legally receive a share of the profits from mortgage financing and/or title insurance when a consumer  purchases real estate.

Exactly how can you help your agents with establishing joint ventures and Affiliated Business Arrangements? 

We offer assistance for joint ventures and affiliated arrangements for aspects including preparation of financial pro-formas, guidance with RESPA requirements and regulations, operational support and problem solving for new and existing entities, and meetings with potential joint venture partners.

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