controlled business arrangement

controlled business arrangement (CBA)

A business arrangement recognized under the Real Estate Settlement and Procedures Act (RESPA) allowing a real estate brokerage office to provide financing, title insurance, and hazard insurance through the vehicle of subsidiary companies that operate within the brokerage office.Restrictions include the requirement that written disclosure of the affiliation be made to consumers,an estimated charge for the services is provided,consumers are free to obtain the services elsewhere,and referral fees are not charged among the various subsidiary companies.