INVESTMENT IN JOINT VENTURE

12 Months Ended

Dec. 31, 2019

INVESTMENT IN JOINT VENTURE

INVESTMENT IN JOINT VENTURE

4.     INVESTMENT IN JOINT VENTURE

During the quarter ended December 31, 2019, the Company, and its newly formed entity eXp Silverline Ventures, LLC entered into an agreement to purchase a 50% ownership interest in Silverline Title & Escrow, LLC (“Silverline”).  The remaining ownership interest is held by a third-party investment entity.

The purpose of the business of Silverline is to operate and manage a title agency that performs, among other functions, core title agent services (for which liabilities arises), including the evaluation of searches to determine the insurability of title, the clearance of underwriting objections, the actual issuance of polices on behalf of insurance companies, and, where customary, the issuance of title commitments and the conducting of title searchers.

The Company made an initial investment of $50,000 and the investment is accounted for under the equity method of accounting and reported as other noncurrent assets in the consolidated balance sheets.  As of December 31, 2019, the operations of Silverline are not material to the Company’s financial position or results of operations.