Dictionary of Real Estate Terms: Controlled Business Arrangement (CBA)
Controlled Business Arrangement (CBA)
a real estate brokerage office that provides related services through subsidiary companies that operate within the brokerage office. The arrangement allows a broker to provide financing, title and hazard insurance, and other ancillary services without violating the Real Estate Settlement Procedures Act (RESPA).
Example: Through a controlled business arrangement, Betty Broker was able to set up an insurance brokerage company, title company, and mortgage banking company within her brokerage firm, mainly to serve the needs of her real estate customers.
