New Disclosure of Referral Payment Form
CATEGORY: Practice Tips Standard Forms
TAGS: Referral Payment Form
The new Disclosure of Referral Payment form and corresponding education guide, are now available on WEBForms®.
As per Section 3-3(f) of the Real Estate Services ActRules, a licensee is required to disclose to a client "all known material information respecting real estate services" being provided. If a licensee has agreed to pay a referral payment, this is material information that must be disclosed to the client. This is true whether the referral payment is to be paid to another licensee or to an unlicensed person. If such a referral payment is to be made, REALTORS® should fill out and deliver the Disclosure of Referral Payment form to the client.
When completing the form, a REALTOR® should include the date of disclosure, the name of the client to whom they are making the disclosure and the property to which the disclosure relates at the top of the page. The REALTOR® should also include his/her name, the amount or form of the referral payment (which may not be cash) and the name of the recipient (which could be a licensed or unlicensed individual, a brokerage or another entity). The REALTOR® should then sign and deliver this form to the client.
The client should sign and date the form upon receipt. While disclosure can be made without a client signing to acknowledge receipt, it is in a REALTOR®'s best interest to have the client sign and to retain a copy of the form if in the future someone were to question whether disclosure of the referral payment was made to the client.
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