Home / Blog / Compliance

MSA vs. ABA vs. joint venture

Three structures get pitched to brokers who want title revenue. They are not equal on risk or return. Here’s the comparison.

Marketing Service Agreement (MSA)

You’re paid for actual marketing services rendered at fair market value. Legitimate in theory, but MSAs have drawn heavy regulatory scrutiny — the payment must reflect real services at real market rates, not disguised referral compensation. The upside is capped at the value of the marketing you genuinely perform, and the compliance risk is high if it drifts.

Affiliated Business Arrangement (ABA)

You hold an ownership interest in a title company and earn a return on it, under the safe-harbor conditions . Ownership income is recurring and scales with the business — but only if the entity is bona fide and the disclosures and no-required-use rules are honored.

Joint venture (a form of ABA)

A joint venture is an ABA where you co-own a real, jointly operated title agency with an operating partner. You get the ownership-return model of an ABA plus a partner who builds and runs the operation and shares cost and risk. It’s usually the cleanest way for a broker to get compliant ownership income without becoming a title operator.

Quick read: MSA = paid for services, high scrutiny, capped upside. ABA/JV = paid for ownership, recurring upside, must be a bona fide company. See can a broker own a title company.
Common questions

Frequently asked questions

Is a Marketing Service Agreement legal under RESPA?
An MSA can be legal if payments are for real marketing services at fair market value — but MSAs are heavily scrutinized, and many have led to enforcement when payments looked like disguised referral fees.
What’s the difference between an ABA and a joint venture?
A joint venture is a type of affiliated business arrangement in which you co-own and jointly operate the title company with a partner who runs the business. Both rely on the same RESPA ownership rules.
Which structure is best for a broker?
For most brokers who want recurring, compliant income without operating a title company, a bona fide joint-venture ABA is the cleanest fit. The right choice always depends on your situation and counsel’s review.
Ready to run your own numbers?

Stop referring the revenue. Start owning it.

Book a confidential discovery call and we'll show you what a Vested title venture could look like in Florida, Georgia, South Carolina, or Tennessee.