N
orthwest MLS is introducing new disclosure forms to provide transparency in home transactions. The Referral Disclosure form will reveal the referral fees brokers pay or receive when homes are sold, helping buyers and sellers understand who's getting paid and how much. While optional, these forms are used by most NWMLS brokers.

    This move towards complete transparency follows Northwest MLS' stance on prohibiting off-market listings, a policy that led to a lawsuit from Compass in April. The industry standard for agent-to-agent referrals is 25%, but some fees can be as high as 50%. This lack of disclosure has been a concern, with only 4% of sellers and 5% of buyers finding their agent through another agent's referral.

    The new forms will enable brokers to disclose referral fees at the time of referral or in the brokerage services agreement. This transparency is essential for consumers to make informed decisions about which broker to engage. As T3 Sixty Senior Vice President Clint Skutchan notes, this change educates consumers about the real cost impacts of transactions and makes them more aware of the financial complexities involved in working with commissioned sales agents.