The article addresses new requirements for real estate brokers in Washington state to disclose referral fees upfront, rather than at closing. Justin Haag, president and CEO of NWMLS, emphasizes the importance of transparency regarding commissions, including referral fees that can reach 50%. A new Referral Disclosure form will detail the involved brokers and the fees, ensuring clients have all information when choosing their brokers. Brokerage service agreements will also reflect this disclosure, reinforcing the commitment to complete client awareness before making financial decisions.
Buyers and sellers should have complete transparency regarding all fees paid to a real estate brokerage firm, including referral fees paid to another firm.
The new Referral Disclosure form identifies the broker and firm receiving the referral, the broker to whom the client is being referred and the amount of the referral fee.
Disclosure of referral fees at the outset of the broker's engagement with a buyer or seller, rather than at the closing is essential.
Some referral fees can be as much as 50% and may impact a buyer's or seller's decision about which broker to engage.
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