Question

An affiliated business arrangement disclosure is due:

a: Within three business days after receiving a completed application
b: At least three business days prior to consummation
c: Within ten days of making a referral
d: At the time a referral is made

Answer 1

An affiliated business arrangement disclosure is due at least three business days prior to consummation in real estate transactions (B).

Step-by-step explanation:

An affiliated business arrangement disclosure should be provided at least three business days before the consummation of a transaction involving a referral to an affiliated business entity. This requirement ensures that consumers have adequate time to review the disclosure before finalizing the transaction.

When a business refers a consumer to an affiliated entity for services like mortgage, title insurance, or settlement services, they must disclose their affiliation and any potential financial interests at least three business days before the transaction's completion. This allows consumers to understand any potential conflicts of interest that might exist and make informed decisions regarding the services they're receiving.

This timing ensures transparency and gives consumers a reasonable period to consider the information before committing to the transaction.

Correct Answer: b) At least three business days prior to consummation.