DENVER — Co-marketing agreements can help agents, brokers, and teams reach a larger audience of prospective buyers. But when forming such an agreement with a settlement service, it’s not enough for the parties involved to know what’s in RESPA (the Real Estate Settlement Procedures Act), a 44-year-old law designed to keep settlement services honest for consumers.
- Keep auditable records of your co-marketing agreements that outline who ordered the materials, who paid for them and who created them.
- The CFPB will assume a referral arrangement exists unless you can prove otherwise. Be very careful with referrals and leads, and never use "preferred provider" language in your marketing materials.
- Be able to articulate the value of the co-marketing arrangement using metrics.