Straight answers before the call.
Economics, compliance, and operations — the questions Florida developers ask most often about affiliated title and Butler rebates.
Economics & structure
What's the difference between an ABA and a Butler rebate?
An affiliated business arrangement (ABA) gives your development entity an ownership interest in a title agency; returns come as distributions on equity. A Butler rebate requires no ownership — a negotiated share of the agent's premium is rebated to you as the premium payor on each closing.
Will the buyer pay a higher title premium if we affiliate?
No. Florida title premiums are promulgated by Rule 69O-186.003, F.A.C. The published rate is the same whether or not an affiliation exists. The advantage is net cost to the developer through rebate or ownership returns — not a higher face premium to the buyer.
Can we start with a rebate and move to an ABA later?
Yes. Many clients begin with Path B (Butler rebate), confirm economics on live closings, then graduate to Path A (ABA) once volume and timeline justify entity formation and disclosure work.
How large can the rebate be?
Rebate share is negotiated against the agent's portion of the premium and program terms. Use the Rebate Math calculator for illustrations; actual figures depend on policy type, endorsements, reissue credits, and contract allocation of closing costs.
Compliance & buyers
Do buyers have to use your title company?
No. Buyers are never required to use any affiliated settlement service provider. That condition is written into program documents and is a core RESPA requirement for affiliated arrangements.
Is a rebate to the developer a kickback?
When structured correctly under Chicago Title Ins. Co. v. Butler, a rebate to the party paying the premium is lawful and typically reflected on the settlement statement — the opposite of a hidden kickback.
What does RESPA require for an ABA?
Among other things: written disclosure of the affiliation, no required use of the affiliated provider, and returns paid only on ownership interest — not as payment for referrals. We build those into the corporate and disclosure documents.
Operations
Where do you close?
Statewide across Florida, with headquarters on Main Street in Sarasota. Policies are issued through the Chicago Title national underwriting network.
How fast can a program launch?
Butler rebate programs can often align with upcoming closings. ABA structures take longer because of entity formation and disclosure drafting — we timeline that against your phases so documentation is not the critical path.
Who oversees escrow?
Title agency licensing, trust accounting, and escrow controls run under attorney supervision, with record-keeping discipline designed for institutional scrutiny.
Is this legal advice?
This website is general information only — not legal advice, an offer to insure, or a premium quote. Bring your own counsel to any engagement; we welcome that review.
Didn't see your question?
Send the pipeline details and the issue you're weighing — rebate, ABA, or timing — and we'll answer directly.