The Northwest Multiple Listing Service updated its referral-fee policy to require brokers to disclose all fees they pay from their commissions to referral firms.

Under the updated policy, all NWMLS brokerage service agreements will include a section for referral-fee disclosure. Additionally, referring firms must submit proper paperwork at the time of the referral.

According to NWMLS President Justin Haag, the change is about increasing transparency among brokers and clients.

“Buyers and sellers should have complete transparency regarding all fees paid to a real estate brokerage firm, including referral fees paid to another firm,” Haag said in a press release. “Some referral fees can be as much as 50% and may impact a buyer’s or seller’s decision about which broker to engage. Buyers and sellers should have complete information when hiring a broker regarding any fees paid to the firm, including any referral obligation of the firm.”