eXp’s new framework signals a shift: Transparency isn’t optional anymore

The nation’s top brokerage by transaction side count, eXp Realty, first entered the forms business during the summer of 2024, as the real estate industry prepared for the business practice changes mandated by the National Association of Realtors’ (NAR) commission lawsuit settlement agreement.

Nearly 18 months later, eXp Realty CEO Leo Pareja and his team are once again expanding their efforts in this space.

Last Tuesday, eXp announced that it is implementing enhanced disclosure standards and a new “Consumer Choice” framework. Part of this framework includes two new forms, one of which is a new referral fee disclosure form.

“The second we started writing forms, Holly [Mabery, eXp’s senior vice president of operations] and I looked at each other and said, ‘We’re in the forms business now,’” Pareja said. “Because we do so many transactions nationwide, we don’t have the luxury of waiting. Once we see that something is directionally accurate, we’re not waiting until either NAR or the local association gives us guidance on certain things. If something appears to be the way of the world, let’s just find a way to do it that is logical.” 

This is exactly what Pareja and Mabery are hoping they accomplish with this new framework. Recently, NAR’s Delegate Body rejected an amendment to the Code of Ethics, which would have required Realtors to obtain a client’s consent any time they receive any money, rebate or profit from referrals. Mabery and Pareja said the initial approval of the amendment by the larger board of directors and the move by Northwest MLS (NWMLS) to add referral fee disclosures to its forms this past summer were indicators that the industry was moving in the direction of increased disclosures. 

“We thought the amendment regarding broker-to-broker referrals was going to pass the board of directors and the delegate body, but it didn’t pass the delegate body, and as a result, we knew immediately we needed to take action,” Mabery said during a webinar about the new forms on Monday. 

eXp’s new single-page referral fee disclosure form provides a space for brokers to acknowledge that they are obligated to pay a referral fee to an identified party. The form notes how much the referral fee is and that the fee will be taken from the compensation the broker earns in the transaction. 

Like eXp’s other forms, including its buyer broker agreement and listing agreement, the form is simple for agents to understand and explain to their clients. 

In addition to the standalone form, which Mabery and Pareja said can be used in conjunction with any listing or buyer agreement, eXp has also added a referral fee disclosure field to its listing agreement and all iterations of its buyer/tenant broker agreement, including its exclusive agreement and its single property agreement. The new field declares that if the box is checked, the agent is obligated to pay a referral fee to an identified party for them having referred the client to them. The agent must then identify if they are to pay a percentage or a specific dollar amount for the referral. It also clarifies that the fee will be taken from the broker’s compensation. 

New forms for eXp agents effective Dec. 1

The brokerage is requiring its agents to use this new form or disclosure field in all of their transactions beginning Dec. 1, 2025. 

In addition to its referral fee disclosure form, eXp also launched its “Consumer choice in your real estate transaction,” which executives said the firm is “recommending” agents use when they recommend ancillary service providers to clients.

It’s about consumer choice

The form stresses that consumers “have a choice at every stage,” of the transaction when it comes to their ancillary services providers. It goes on to state that while many companies or even individual agents may offer bundled packages or recommendations of ancillary services, consumers are “never required to use any particular ancillary service provider.” 

“We encourage you to interview at least two different ancillary service providers, in any given ancillary service field, to ensure you receive the most competitive rates and terms from the most qualified and experienced ancillary service providers. The decision is yours,” the form states. “eXp Realty’s commitment to your independent choice is supportive of applicable state and federal law, including the Real Estate Settlement Procedures Act (RESPA).”

The form then goes on to list a variety of ancillary service providers including lender, home inspector, closing services, title insurance and home warranty, with a place for the agent to list recommendations. The consumer must then sign the form, acknowledging that they understand their right to “choose the best ancillary service provider for [their] transaction.”

Mabery and Pareja noted that this form does not replace affiliated business agreement disclosure forms, which must be used regardless of whether or not they use this new form. 

“In this era where the probability of a service being referred is going up further than it has in the past, we want to make sure that the consumer has all the information, and we’re doubling down on making sure that they understand that there is choice in this process,” Pareja said during Monday’s webinar. “One thing that hasn’t changed is we’re continuing to be as transparent as possible.”

Looking ahead, Mabery and Pareja, who both applauded NWMLS, the California Association of Realtors and Benchmark Realty for their efforts to improve referral fee transparency, believe more and more entities will begin to mandate referral fee disclosure. 

“We thought it was going to come down through the National Association of Realtors but unfortunately it didn’t,” Mabery said. “Now we’re going to see this being taken on by states like California or by MLSs like Northwest MLS, and we’ll see it start to move across the United States. At the end of the day, we’re looking to where we go in 2026 and making things better. We believe a rising tide raises all ships. So we’re not going to wait. We’re going to be proactive.”