What is disclosed in an affiliated business disclosure?

An affiliated business disclosure specifically addresses the relationships that exist between a real estate company and other settlement service providers. This disclosure is required when there is a referral made from one service provider to another within the same ownership umbrella or where a designated relationship exists. For instance, if a real estate agent refers a client to a title company they have an ownership interest in, they must disclose that relationship to ensure transparency for the client. This practice is crucial in maintaining ethical standards in real estate transactions and protecting consumers from potential conflicts of interest.

The other options, although related to real estate, do not specifically pertain to the affiliated business disclosure. Ownership of the real estate company, commission structures of agents, and current market conditions are important information but do not directly relate to the requirements set forth by the affiliated business disclosure itself.