Referral fee transparency debate grows in real estate for 2025

"Unsurprisingly, Washington state's Northwest MLS (NWMLS) was one of the first movers on this topic, adding referral fee disclosures to its forms in June. At the time, a spokesperson for the MLS told HousingWire that it had been working on the issue for over a year, as it felt referral fee disclosures were the next logical step to continuing to enhance transparency for consumers."

"At the National Association of Realtors' (NAR) board of directors meeting in November in Houston, the board initially approved an amendment to Article 6 of the Realtor 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. During the meeting, the proposal was approved with 83.55% of directors voting in favor and 16.45% opposed. However, just a few hours later, during the Delegate Body meeting, the proposal was rejected."

"At the time, a spokesperson for the MLS told HousingWire that it had been working on the issue for over a year, as it felt referral fee disclosures were the next logical step to continuing to enhance transparency for consumers. According to NWMLS CEO Justin Haag, the disclosure of referral fees at the outset of the broker's engagement with a buyer or seller, rather than at the closing or sometimes not at all, is essential, but not all real estate professionals feel this way."

2025 saw major legal and business developments in housing, with Clear Cooperation dominating early policy debate and referral fee transparency rising in the second half of the year. Washington state's NWMLS added referral fee disclosures to forms in June after more than a year of internal work. NWMLS CEO Justin Haag emphasized disclosing referral fees at the outset of broker engagement rather than at closing. The NAR board briefly approved an amendment requiring client consent for referral-related payments but the Delegate Body later rejected it. Several brokerages and state associations then implemented their own disclosure measures.

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