A title referral can involve more than choosing a provider. When the referring person has an affiliated relationship under New York Regulation 206, the transaction may carry specific disclosure obligations. NYSLTA revisited these requirements in its March 2026 compliance overview. For referring attorneys and title professionals, the practical starting point is to identify the relationship before making the referral.
Start with the relationship
Affiliation has a defined meaning under Section 35.1. Ownership, control, certain interests in a title insurer, and specified relationships involving applicants or their representatives may be relevant. A professional connection alone is not a substitute for checking the definition. Review the actual arrangement rather than assuming that every referral is affiliated or that an established relationship needs no further attention.
Regulation 206 disclosure timing and responsibility
Subject to the exception in Section 35.5(c), the affiliated person making the referral must provide the required disclosures in a separate writing at the time of referral and obtain the applicant’s written acknowledgment. The receiving title agent or insurer is also responsible for ensuring that the applicant receives the required disclosures. This is not simply a requirement to deliver something before a fee is charged.
What the disclosure addresses
Section 35.5(a) covers the referrer’s interest and potential benefit; the applicant’s freedom to choose another provider; the basis of compensation and its independence from referral volume; the absence of a required referral quota; expected compensation or, if unknown, the circumstances and a reasonable estimate; and whether the receiving business obtains non-affiliated business from more than one source. The complete rule should guide the disclosure used for the transaction.
Account for the exception
Section 35.5(c) treats a title agent who also represents the applicant in another capacity, including as an attorney, differently. That agent is not subject to subsection (a), but must advise the applicant that they are not required to use that person as their title agent. The parties should identify the applicable provision rather than applying one checklist to every arrangement.
Keep fee disclosures separate
Regulation 206 also addresses fees and charges in other provisions. Those requirements do not replace the affiliated-referral disclosure. Treating referral disclosure and fee disclosure as separate checks helps avoid confusion about timing and responsibility.
Three questions before the referral
- Does this arrangement meet the regulation’s affiliation definition?
- Which disclosure provision applies, including any exception?
- Who will provide the required information and preserve the appropriate documentation?
Resolve unclear answers before moving forward.
United American Title Agency serves New York and Florida. To discuss title and settlement services for an upcoming transaction, contact our team at (718) 441-2027.
This article provides general educational information about New York requirements. It does not determine the obligations of any particular transaction.