(1) (a) An affiliated business arrangement is permitted where the person referring business to the affiliated business arrangement receives payment only in the form of a return on an investment and where it does not violate the provisions of section 10-11-108 (1).
A title insurance company or a title insurance agent making a referral as part of anaffiliated business arrangement shall disclose the affiliation in accordance with the federal "Real Estate Settlement Procedures Act of 1974", as amended, 12 U.S.C. sec. 2601 et seq.
Neither a title insurance company nor a title insurance agent shall require the use ofan affiliated business arrangement or a particular settlement producer as a condition of obtaining title insurance services from the company or agent. For the purposes of this paragraph (c), "require the use" shall have the same meaning as "required use" in 12 CFR 1024.2.
The commissioner may promulgate rules concerning the creation and conduct of anaffiliated business arrangement, including, but not limited to, rules defining what constitutes a sham affiliated business arrangement. Nothing in this subsection (2) shall be construed to increase a fee or create a licensure program for affiliated business arrangements. The commissioner shall adopt the rules, policies, or guidelines issued by the United States department of housing and urban development concerning the federal "Real Estate Settlement Procedures Act of 1974", as amended, 12 U.S.C. sec. 2601 et seq. Rules adopted by the commissioner shall be at least as stringent as the federal rules and shall ensure that consumers are adequately informed about affiliated business arrangements. The commissioner shall consult with the real estate commission pursuant to section 12-10-218 (5) concerning rules the real estate commission may promulgate concerning affiliated business arrangements. Neither the rules promulgated by the commissioner nor the real estate commission may create a conflicting regulatory burden on an affiliated business arrangement.
The division may share information gathered during an investigation of an affiliatedbusiness arrangement with the division of real estate.
Source: L. 2006: Entire section added, p. 266, § 2, effective July 1. L. 2007: (1)(b) and (2) amended, p. 2019, § 10, effective June 1. L. 2019: (2) amended, (HB 19-1172), ch. 136, p. 1652, § 38, effective October 1. L. 2020: (1)(c) amended, (HB 20-1402), ch. 216, p. 1043, § 15, effective June 30.