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AFFILIATED BUSINESS ARRANGEMENT DISCLOSURE STATEMENT To: ... I/we have read this disclosure form, ... Signature Date ...

How to fill out affilated business arrangement disclosure

How to fill out affiliated business arrangement disclosure:

1. Start by identifying the parties involved in the arrangement. This includes the main business and any affiliated businesses that have a relationship or financial interest in the main business.
2. Clearly state the purpose of the affiliated business arrangement. This could involve joint marketing efforts, profit-sharing, or any other mutual benefit that the parties involved have agreed upon.
3. Provide a detailed description of the services or products offered by the affiliated business. This will help clarify the nature of the arrangement and ensure transparency for anyone reading the disclosure.
4. Include information about the compensation or fees involved in the arrangement. Be specific about how the compensation is calculated and whether it is a fixed amount or a percentage of sales or profits.
5. Disclose any potential conflicts of interest that could arise from the affiliated business arrangement. This includes any situations where the affiliated business may have a financial incentive to promote certain products or services over others.
6. Clarify any limitations or restrictions on the arrangement. This could include the duration of the agreement, any termination clauses, or any conditions that must be met for the arrangement to continue.

Who needs affiliated business arrangement disclosure:

1. Real estate professionals who have an affiliation with a mortgage company, title company, or other related service providers.
2. Lenders or loan officers who have a partnership or financial interest in a real estate brokerage or other real estate-related business.
3. Any other business or individual who enters into an arrangement where there is a financial interest or relationship with another party that could potentially influence the services or products offered.

It is important to note that the specific requirements for affiliated business arrangement disclosure may vary depending on the jurisdiction and industry. It is advisable to consult with legal or regulatory experts to ensure compliance with applicable laws and regulations.

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