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Introduction: Setting the New Standard for Transparency
Introduction: Setting the New Standard for Transparency
The industry is shifting, and today’s consumers expect clear, upfront communication about how real estate professionals get paid and who’s involved in their transaction. At The Cliff Freeman Group, we’re getting ahead of that shift.
This page gives you a simple, practical overview of the new referral disclosures, consumer choice requirements, and affiliated business rules. These tools protect our clients, protect you, and strengthen the trust that drives your business.
Below, you’ll find:
• A short eXp video explaining the changes
• Our slide deck with examples and guidance you can use immediately
Your job is straightforward: be clear, be direct, and put everything in writing. When you lead with transparency, you reinforce the professional standard our clients deserve.
Let’s dive in.
Explainer Guide: Understanding the New Referral & Transparency Standards
Explainer Guide: Understanding the New Referral & Transparency Standards
These new standards are designed to make your job easier, not harder. When you follow them consistently, you protect your clients, strengthen your credibility, and keep every transaction compliant.
Below is a simple breakdown of the three types of disclosures you need to understand and when they apply.
MORE INFO: https://exptoolkit.com/buyerrepresentation
1. Broker-to-Broker Referral Disclosure
1. Broker-to-Broker Referral Disclosure
This disclosure is required when you will be paying a referral fee to any external brokerage or to eXp Commercial.
It is not required for referrals inside eXp Realty, since we are one brokerage across all 50 states.
Disclosure Required For:
• Compass, KW, RE/MAX, Coldwell Banker, etc.
• Relocation companies
• Pay at Close Lead referral networks like ROAM, OJO, Realtor.com Opcity, FastExpert, Homelight, Ribbon, Knock, Sundae, Offerpad, Opendoor, Movato, etc.
• eXp Commercial ↔ eXp Realty referrals
• Any individual expecting a referral fee who is not with eXp Realty
Disclosure NOT Required For:
• eXp Realty → eXp Realty referrals
When to Disclose:
At the time you sign the listing or buyer agreement.
Use the embedded language in the eXp forms or the standalone form when using state/association forms.
2. Consumer Choice Form (Vendor Recommendations)
2. Consumer Choice Form (Vendor Recommendations)
When you recommend lenders, inspectors, title companies, or other service providers, you should give the client more than one option and document it.
This protects your fiduciary responsibility and helps the client make an informed choice.
Use this when recommending:
• Lenders
• Home inspectors
• Title/escrow companies
• Home warranty companies
• Contractors/trades
This form is a best practice, not a requirement, but it keeps you compliant and consistent across all client interactions.
REMEMBER: If you're going to refer one.... refer THREE!
3. ABA Disclosure (Affiliated Business Arrangement)
3. ABA Disclosure (Affiliated Business Arrangement)
This one is federal law (RESPA).
If our brokerage or leadership has any ownership interest in a service provider, you must disclose that relationship.
Examples:
• Affiliated mortgage or title partnerships
• Joint ventures with service providers
• Any financial stake that could benefit someone involved
This is required every time that affiliated service is offered or recommended.
How These Work Together
How These Work Together
Think of the three disclosures as a simple decision tree:
Is someone outside eXp Realty being paid a referral fee?
→ Use the Broker-to-Broker Disclosure.Am I recommending a lender, inspector, or vendor?
→ Use the Consumer Choice Form (give multiple options).Does the brokerage or leadership have a financial interest?
→ Use the ABA Disclosure.
When in doubt, disclose.
If it matters later, it should be written down now.
FAQ: Your Most Common Questions Answered
FAQ: Your Most Common Questions Answered
Do I have to tell clients the referral percentage?
Do I have to tell clients the referral percentage?
Yes. The disclosure requires the percentage and the name of the referring brokerage.
Will clients think this costs them extra?
Will clients think this costs them extra?
No. Referral fees come out of your commission. A simple script handles this. Watch the BAM Deep Dive: How to Present Consumer Choice
Are eXp-to-eXp referrals exempt?
Are eXp-to-eXp referrals exempt?
Yes. We are one national brokerage, so no disclosure is needed.
Do I need a disclosure for eXp Commercial referrals?
Do I need a disclosure for eXp Commercial referrals?
Yes. eXp Commercial is a separate brokerage.
What if I recommend one lender I trust the most?
What if I recommend one lender I trust the most?
You must still provide multiple options. You can explain why you prefer one, but the client needs choice.
What if the client already has a lender?
What if the client already has a lender?
If you do not recommend anyone, the Consumer Choice form is not needed.
Should these forms be uploaded to Skyslope?
Should these forms be uploaded to Skyslope?
Yes. They are part of your compliance file.
What happens if I forget to disclose something?
What happens if I forget to disclose something?
It can create trust issues, contract risk, and potential compliance violations. Better to over-disclose.
What if the referral relationship is created after the agreement is signed?
What if the referral relationship is created after the agreement is signed?
You must disclose it in writing as soon as it becomes known. Use the standalone referral disclosure form.
Is this connected to the NAR settlement?
Is this connected to the NAR settlement?
No. This is about transparency and consumer trust, not NAR policy.
Why is eXp doing this now?
Why is eXp doing this now?
The industry is moving toward stronger consumer advocacy. eXp is choosing to lead instead of follow.
Closing Reminder
Closing Reminder
Your goal is simple:
Be transparent, be consistent, and put everything in writing.
These standards aren’t about more paperwork.
They’re about strengthening trust with the people who hire you to guide one of the biggest decisions of their lives.
If you’d like, I can format this into a clean webpage section with headers, spacing, and CTAs, or build a downloadable one-page PDF version for your agents.
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