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alifornia Association of Realtors (CAR) will revise its standard disclosure form next month to improve transparency around referral fees, following a failed proposal at NAR’s annual meeting. The update aims to give buyers and sellers a clearer picture of agent compensation. CAR President Tamara Suminski said the organization has long supported full disclosure of referral fees, noting that informed clients can make better choices when they know all compensation sources.

    The change comes after the NAR Delegate Body narrowly rejected a Code of Ethics amendment on November 17 that would have mandated broader fee disclosure. The motion received 66.3% support, just below the two‑thirds threshold, due to concerns over rapid implementation and unintended effects.

    CAR’s move underscores the faster pace of state and MLS reforms compared to national policy. For instance, Northwest MLS introduced a new referral‑disclosure form and embedded fee language in agency contracts in June, ensuring disclosure at contract signing.

    Broker‑to‑broker referral payments remain largely hidden from consumers, yet they matter to the industry. NAR data shows 4% of sellers and 5% of buyers found their agent through a referral.