eXp Realty rolls out consumer choice and referral fee forms

"eXp's new single-page referral fee disclosure form provides a space for brokers to acknowledge that they are obligated to pay a referral fee to an identified party. The form notes how much the referral fee is and that the fee will be taken from the compensation the broker earns in the transaction. Like eXp's other forms, including its buyer broker agreement and listing agreement, the form is simple for agents to understand and explain to their clients."

"Recently, NAR's Delegate Body rejected an amendment to the 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. Mabery and Pareja said the initial approval of the amendment by the larger board of directors and the move by Northwest MLS (NWMLS) to add referral fee disclosures to its forms this past summer were indicators that the industry was moving in the direction of increased disclosures."

eXp created a single-page referral fee disclosure form and added referral-fee fields to transaction documents to increase transparency and accelerate compliance. The disclosure form provides space for brokers to acknowledge an obligation to pay a referral fee to an identified party, specifies the referral amount, and states that the fee will be taken from the broker's compensation. The standalone form can be used with any listing or buyer agreement and mirrors other eXp forms that prioritize simplicity for agents. eXp implements changes proactively when industry direction appears clear rather than waiting for NAR or local association guidance. Industry signals included initial board approval of a Code of Ethics amendment and NWMLS adding referral disclosures.

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