Brokerages retool referral disclosures after failed NAR vote
Benchmark Realty and eXp Realty have unveiled new referral fee disclosure forms to enhance transparency and bolster agents’ fiduciary responsibility to clients.
Key points:
- Though a vote on enhanced referral fee disclosure failed at NAR NXT 2025, some brokerage leaders are still moving forward with updated forms.
- In addition to updated disclosures about referral fees, eXp Realty is presenting new “Consumer Choice” language in their agreements to encourage sellers to shop around for their own ancillary service providers.
- Benchmark Realty applauded the California Association of Realtors’ recent move to bolster referral fee disclosure and released its own updated policy.
While a vote to make referral fees more transparent to buyers and sellers failed at the National Association of Realtors' annual conference earlier this month, some major players in the brokerage space have decided to move forward with enhanced disclosure regardless of NAR's formal position.
eXp proposes 'new standard for consumer advocacy'
In an announcement this week, eXp Realty indicated that it will be "proactively implementing enhanced disclosure standards" with new forms. Starting Dec. 1, the brokerage will be offering a so-called "Consumer Choice" structure that will highlight and reiterate a consumer's ability to choose their own various ancillary providers — such as mortgage, title and more — as well as an updated referral fee disclosure.
The updated form indicates that, while agents are likely to recommend "their own ancillary service provider recommendations," eXp ultimately encourages consumers to shop around.
"While these bundled packages and recommendations can simplify the process, you are never required to use any particular ancillary service provider," the form reads. "We encourage you to interview at least two different ancillary service providers, in any given ancillary service field, to ensure you receive the most competitive rates and terms from the most qualified and experienced ancillary service providers. The decision is yours."
The company said that providing these forms will help further demonstrate agents' fiduciary duty to their clients. And similarly to how the company invited anyone in the industry to use the updated listing agreement form and buyer agency agreement it unveiled last year — which the Consumer Federation of America described as being "fundamentally pro-consumer" — as a foundation, eXp is also offering its latest batch of forms to "the entire industry."
Benchmark Realty also declares 'commitment to transparency'
Benchmark Realty has joined in on the transparency push by announcing this week that it will be "taking a clear and decisive stand" on compensation and referral fee disclosure. In a social media post announcing the new policy, Benchmark applauded the California Association of Realtors' recent decision to revise a standard form to boost disclosure of referral fees for consumers.
Benchmark has already shared the language in its new referral disclosure policy. In order to protect consumers and maintain ethical principles, the policy reads, any referral fee paid or received by Benchmark agents "must be fully disclosed to clients in writing before or at the time of the referral arrangement."
Non-compliance can result in disciplinary action, Benchmark warned, "including potential termination of affiliation" with the brokerage.
"While the national Realtor association, as well as most state and local associations have declined to adopt mandatory transparency policies, Benchmark Realty believes our clients deserve complete clarity regarding how real estate professionals are compensated. Our policy is designed to preserve trust, protect consumers, and strengthen professionalism in the industry," the new policy reads.