Affiliated Business Arrangement Disclosure Statement
This is to give you notice that Long & Foster Real Estate, Inc. ("Long & Foster"), also doing business as Virginia Properties, and Northrop Realty¹, and the settlement service providers listed in the table below are part of a family of companies (the "Affiliated Companies") owned by Berkshire Hathaway, Inc. ("Berkshire Hathaway"), and each may refer to you the services of another. Each of the Affiliated Companies is indirectly owned, in whole or in part, by a common parent, HomeServices of America, Inc. ("HSoA"), a Berkshire Hathaway affiliate. The percentage of indirect ownership interest held by HSOA in each Affiliated Company is indicated in the table. In addition, HomeServices Title Holdings, LLC, a wholly-owned subsidiary of HSoA, indirectly owns 13.5% of Title Resources Guaranty Company ("TRG"), which may provide title insurance services for any of the affiliate companies listed in Section A below. Silverton Mortgage is a wholly-owned indirect subsidiary of Clayton Homes, a Berkshire Hathaway affiliate. Because of these relationships, the referral of a customer (including you) by any of the Affiliated Companies to another may provide the referring company, its affiliates, and/or their employees with a financial or other benefit.
While Long & Foster Insurance Agency, LLC ("LFIA"), an Affiliated Company, does not have common ownership with Cinch Home Services, Inc. ("Cinch Home Services"), it does advertise them for a fixed service fee
Mid-States Title Insurance Agency, LLC ("Mid-States"), a Long & Foster affiliate, has business relationships with the following unaffiliated closing attorneys, pursuant to which Mid-States advertises these firms for a fixed service fee: Crawford and Law Group, PLLC; Baird Mandalas Brockstedt, LLC; and Giordano, DelCollo, Werb & Gagne, LLC; Scott and Shuman, P.A.; and Weeks & Irvine, LLC.
| AFFILIATED COMPANIES | |
|---|---|
| SECTION A: Settlement of Your Loan and / or Title Insurance | |
| Infinity Title Agency (NJ) (d/b/a of Sage Title Group, LLC) (100%) | Infinity Settlement Agency (PA) (d/b/a of Sage Title Group, LLC) (100%) |
| Sage Premier Settlements (PA, NJ, DE, MD) (d/b/a of Sage Title Group, LLC) (100%) | RGS Property Closing Services (PA) (d/b/a of RGS Title LLC) (100%) |
| Sage Title Group, LLC (VA, MD, DC, WV) (100%) | RGS Title LLC (VA, MD, DC, WV) (100%) |
| Sage Settlement Group (PA) (d/b/a of Sage Title Group, LLC) (100%) | Trident Land Transfer Company LP (PA, DE) (100%) |
| Bon Air/Long & Foster Title Agency LLC (VA) (50%) | Trident Land Transfer Company (NJ), LLC (NJ) (49%) |
| Attorneys Title Holdings, Incorporated (NC) (100%) | |
| Realm Title Agency, LLC (VA,MD, DC, DE, NC) (51%) (“Realm”) 2 | |
| SECTION B: Property / Hazard / Flood Insurance | |
| Long & Foster Insurance Agency, Inc. (100%) | Trident Insurance Agency Company (d/b/a of HomeServices Insurance, Inc.) (100%) |
| HomeServices Insurance, Inc. (100%) | |
| SECTION C: Mortgage Services | |
| Prosperity Home Mortgage, LLC (100%) | Silverton Mortgage (d/b/a of Vanderbilt Mortgage and Finance, Inc.)(100%) |
| SECTION D: Real Estate Services | |
| Berkshire Hathaway HomeServices ® Fox & Roach, REALTORS (PA, NJ, DE, MD) (d/b/a of Fox & Roach LP) (100%) | Berkshire Hathaway HomeServices Carolinas Realty, York Simpson Underwood Realty, Yost & Little Realty, and Pinehurst Realty Group (d/b/a of Preferred Carolinas Realty, Inc.) (NC, SC) (100%) |
| Houlihan Lawrence, Inc. (NY, CT) (100%) | |
Set forth below is the estimated charge or range of charges for each of the services listed. You are NOT required to use any of these service providers as a condition of the sale of the subject property or to obtain access to any settlement service.
THERE ARE FREQUENTLY OTHER SETTLEMENT SERVICE PROVIDERS AVAILABLE WITH SIMILAR SERVICES. YOU ARE FREE TO SHOP AROUND TO DETERMINE THAT YOU ARE RECEIVING THE BEST SERVICES AND THE BEST RATE FOR THESE SERVICES.
| PROVIDER | SETTLEMENT SERVICE | ESTIMATED RANGE OF CHARGES |
|---|---|---|
| Providers listed in Section A above | Settlement Fees, including Document Preparation, Title Search & Exam Fees | $0 - $2,000 Fees vary depending on transaction type and state |
| Title Charges | See Title Insurance Chart below | |
| Providers listed in Section B above | Homeowner’s Insurance | $300 - $10,000 plus per year; charges may vary based on coverage requested and other factors including multi-unit properties. |
| Flood Insurance | Flood insurance is not included in this estimate but may be available for an additional fee and may be lender required. | |
| Providers listed in Section C above | Loan Origination Fee | $0 - $1,565 ( 2% of loan amount on some bond products) |
| Appraisal | $425 - $2,100 | |
| Third Party Fees | $110 - $375 (credit report, tax service fee, flood cert fee) | |
| Providers listed in Section D above | Real Estate Brokerage Services | 3%-10% of the sales price plus up to $1,200 |
| Providers listed in Section E above | Property Inspection Services | $509-$1229 |
1Northrop Realty is also a trade name for The Northrop Team, P.C. (“Northrop”), a separate realty company that operates under Long & Foster’s real estate license. Northrop is not an “Affiliated Company” as that term is used in this Affiliated Business Arrangement Disclosure.
2Realm is 49% owned by an unaffiliated entity in which an independent contractor real estate agent of Long & Foster, Creig Northrop, has an ownership interest. Accordingly, the referral of a customer (including you) to Realm may provide Mr. Northrop with a financial or other benefit.
TITLE INSURANCE FOR AFFILIATES
ESTIMATE OF RANGE OF CHARGES GENERALLY MADE BY PROVIDER
| STATE | SALES PRICE | PREMIUM FOR AFFILIATES |
|---|---|---|
| DE | First $100,000 $100,001 - $1,000,000 $1,000,001-$5,000,000 |
$4.60 per $1,000 of coverage add $3.90 per $1,000 of coverage add $3.25 per $1,000 of coverage Enhanced policy is 120% of above rates. Simultaneous issue of Lenders’ Policy (DE) is $25. Lender required endorsements are $50 each. Closing Protection Letter (CPL) per Lender Policy is $125. |
| DC | First $250,000 $250,001 - $500,000 $500,001 - $1,000,000 $1,000,001-$5,000,000 |
$6.84 per $1,000 of coverage add $6.12 per $1,000 of coverage add $5.40 per $1,000 of coverage add $4.68 per $1,000 of coverage Simultaneous issue of Lenders’ Policy (DC) is $100. Closing Protection Letter (CPL) per Lender Policy is $50. |
| MD | First $250,000 $250,001 - $500,000 $500,001 - $1,000,000 $1,000,001- $2,000,000 |
$6.15 per $1,000 of coverage add $5.25 per $1,000 of coverage add $4.50 per $1,000 of coverage add $3.35 per $1,000 of coverage Simultaneous issue of Lenders’ Policy (MD) is $200. Closing Protection Letter (CPL) per Lender Policy is $45. |
| NJ | First $100,000 $100,001 - $500,000 $500,001 - $2,000,000 |
$5.25 per $1,000 of coverage add $4.25 per $1,000 of coverage add $2.75 per $1,000 of coverage Enhanced policy is 120% of above rates. Simultaneous issue of Lenders’ Policy is $25. Lender required endorsements are $25 each. Closing Service Letter per Lender Policy is $75. |
| NC | First $250,000 $100,001 - $500,000 $500,001 - $2,000,000 $2,000,001 - $7,000,000 |
$2.54 per $1,000 of coverage add $1.98 per $1,000 of coverage add $1.29 per $1,000 of coverage add $0.99 per $1,000 of coverage Enhanced policy 120% of above rates. Simultaneous issue of Lenders’ Policy is $26. Closing Protection Letter is an additional 10% if lenders’ policy issued. Premium for issuance of commitment is $15. Lender required endorsements are $20 each. |
| PA | First $30,000 $30,001 - $45,000 $45,001 - $100,000 $100,001 - $500,000 $500,001 - $1,000,000 $1,000,001-$2,000,000 |
$569.00 flat fee add $7.41 per $1,000 of coverage add $6.27 per $1,000 of coverage add $5.70 per $1,000 of coverage add $4.56 per $1,000 of coverage add $3.42 per $1,000 of coverage Lender-required endorsements (PA) are $50-$500. Closing Protection Letter (CPL) per Lender Policy is $125. |
| SC | First $50,000 $51,001 - $100,000 $100,001 - $500,000 $500,001- $5,000,000 |
$3.60 per $1,000 of coverage $3.00 per $1,000 of coverage $2.10 per $1,000 of coverage $1.80 per $1,000 of coverage Enhanced policy 120% of above rates. Simultaneous issue of Lenders’ Policy (SC) is $100. Closing Protection Letter (CPL) per Lender Policy is $20. |
| VA | First $250,000 $250,001 - $500,000 $500,001 - $1,000,000 $1,000,001- $2,000,000 |
$4.92 per $1,000 of coverage $4.68 per $1,000 of coverage $4.32 per $1,000 of coverage $2.88 per $1,000 of coverage Simultaneous issue of Lender’s Policy (VA) is $200. Closing Protection Letter (CPL) per Lender Policy is $35. |
| WV | First $100,000 $100,001 - $500,000 $500,001 - $2,500,000 |
$4.00 per $1,000 of coverage add $3.00 per $1,000 of coverage add $2.00 per $1,000 of coverage Enhanced policy is an additional $30 surcharge added to the basic rates. Simultaneous issue of Lender's Policy is $100. Title insurance commitment fee per policy will not exceed $100 |
| CONTRACTED PROVIDERS | ||
|---|---|---|
| PROVIDER | SETTLEMENT SERVICE | ESTIMATED RANGE OF CHARGES |
| Cinch Home Services | Home Warranty | $459 - $2,062, depending on property and optional coverage |
ACKNOWLEDGEMENT: I/we have read this disclosure form and understand that the Affiliated Companies may refer me/us to purchase the above-described settlement service(s) from one another and that any such referrals may provide the referring company, its affiliates, and/or their employees with a financial or other benefit. I/we also understand that LFIA receives fixed fees for advertising, and related services performed for Cinch Home Services.