Benchmark Realty takes a stand for referral fee transparency

"Per the policy, all agents brokered by Benchmark Realty must disclose any and all referral fees, incentive payments or financial benefits expected to be paid to or received from any party as part of the real estate transaction. These disclosures must be made in writing, facilitated by updated language in the firm's affiliate business disclosure form and the forms must be completed as soon as a referral agreement is created or known"

"The policy covers referral fees related to agent-to-agent referrals, relocation networks, lead generation platforms, broker-to-broker referrals, marketing or advertising networks that compensate agents or any third-party service provider tied to compensation or incentives. According to Benchmark, clients must understand who is paying the referral fee, who is receiving it, the amount or how the fee is calculated and that the fee is not going to increase their costs or reduce the quality of service they receive from their agent."

Benchmark Realty mandates written disclosure of any referral fees, incentive payments, or financial benefits expected in a real estate transaction. The firm requires updated language in its affiliate business disclosure form and immediate completion of those forms once a referral agreement exists or is known, and no later than client signature on representation or transaction documents. Agents must upload signed disclosure forms into the transaction file. The policy covers agent-to-agent referrals, relocation networks, lead-generation platforms, broker-to-broker referrals, and marketing networks that compensate agents. Clients must be informed who pays and receives fees, how amounts are calculated, and that service quality or costs will not be adversely affected. Noncompliance may lead to disciplinary action, including termination of affiliation. The announcement followed similar enhanced disclosure steps by another firm and activity at the trade-group level regarding referral-fee transparency.

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