Real estate brokers can engage in cooperative marketing with title companies, but compliance rules are strict. Learn the ends and outs of compliance in co-marketing.

1. Co-Marketing
Pro-rata Share Analysis and Documentation

2. RESPA Section 8
“Nothing in RESPA prevents joint advertising” as long as each party
pays its pro-rata share.
Example: Cost of a brochure containing equal amounts of
information about two settlement service providers may be split
50/50.
• CFPB has not provided additional guidance specific to joint
advertising.
• Online advertising presents new challenges with respect to
calculating
pro-rata share of advertisements.

3. How do I calculate the percentage of benefit on
Joint advertisements?
In this example:
What is the total ad space?
Front = 3” x 5” = 15 sq inches
Back = 3” x 5” = 15 sq inches
PMR’s benefit?
Front = 1.5”x 1.5” = 2.25 sq inches
*Back = 3”x 2.5” / 2 = 3.75 sq inches
*50% split of address space
6.0 sq inches PMR / 30 sq inches total =
30 Sq inches
6.0 sq inches
20% space benefit to PMR
NOTE: Since PMR does not sell houses we cannot claim benefit for
details surrounding the house and neighborhood shown on the face of
this example.

4. Co-Marketing Approval Form:
This form must be completed in its entirety to document:
- Production and distribution costs
- Allocation of the costs between PMR advertiser and the
settlement service provider costs.
- Cost allocation as a percentage of advertising benefit.
- Distribution Method, Printed / website
- Duration of advertisement.
All advertising and marketing materials,
whether provided via printed, television, radio,
internet, or social media must be pre-approved
through PMR’s compliance officer in advance.
PMR’s Compliance department reviews all advertising materials
for:
• SAFE Act licensing disclosures
• Regulation Z – Trigger Terms
• Equal Credit Opportunity compliance, discouraging or
discriminatory language.
• UDAAP Compliance
• Products and terms that are actually available to
consumers
• RESPA compliance