CAR amends forms for increased referral fee transparency

"The California Association of Realtors has long championed compensation transparency, especially when it comes to real estate transaction referral fees. C.A.R. has always led the way in demonstrating public trust by supporting full disclosure of referral fee arrangements and advising its members accordingly, she said in a statement. Ensuring that consumers know exactly how their real estate professionals are compensated is central to protecting consumers' interests and reinforcing trust in the transaction process."

"When clients understand whether and how referral fees are involved, they are empowered to make more informed decisions, ask the right questions, and confidently evaluate the services they receive. As a result of this conviction, Suminski said CAR is revising one of its standard forms to enhance language regarding referral fees and provide a standardized way to make these disclosures. The updated form will be released next month."

"According to Suminkski, by taking this approach consumers working with CAR members will be fully aware of all sources of compensation, including referral fees, improving transparency for consumers. This announcement came after NAR's Delegate Body rejected an amendment to Article 6 of the trade group's code of ethics, which would have required Realtors to obtain a client's consent any time they receive any money, rebate or profit from referrals, after NAR's board of directors meeting on Monday."

California Association of Realtors emphasizes compensation transparency and supports full disclosure of referral fee arrangements. Ensuring consumers know precisely how real estate professionals are compensated protects consumer interests and reinforces trust in transactions. When clients understand whether and how referral fees are involved, they can make more informed decisions, ask appropriate questions, and evaluate services confidently. C.A.R. will revise a standard form to enhance language about referral fees and standardize disclosures, with the updated form to be released next month. The revision follows the NAR Delegate Body's rejection of an Article 6 amendment that would have required client consent for any referral-derived money after NAR's board meeting.

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