New WRA Form Promotes Transparency in Referral Compensation Arrangements

The WRA has developed a new optional form to help real estate firms and agents disclose referral compensation arrangements to consumers. The WRA-DRC Disclosure of Referral Compensation provides a simple, standardized way to inform consumers when compensation may be paid in connection with a referral, without requiring disclosure of the amount.

Referrals are a common part of the real estate industry. A licensee may refer a buyer or seller to another real estate firm because the consumer is relocating, purchasing property in another market or seeking services from a firm with particular expertise. In other situations, consumers may be connected with real estate firms through relocation companies, referral networks, online platforms or other referral sources....