Brokerage behemoth Compass is leaning into the agent-friendly “your listing, your lead” mentality with a new Listing Agent Lead and Referral Program that rewards listing agents with a 10 percent referral fee when they send inquiries on their listing to other Compass agents, the company has informed Inman.

Buyer inquiries for listings on Compass.com go directly to the listing agent so that they have the first opportunity to work with buyers themselves, Compass said. But now, with the new lead program, if Compass listing agents do not want to work those buyer inquiries themselves, they can still benefit from referring inquiries to a Compass buyer’s agent when the transaction closes within 24 months.

After that period, agents will not be eligible for the 10 percent referral.

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“We believe listing agents should own and benefit from the leads generated by their listings,” Compass International Holdings Chairman and CEO Robert Reffkin said in a statement. “For too long, platforms that do not represent the seller’s best interests have removed listing agent information and sold buyer inquiries to the highest bidder. This program creates a better system — one that rewards the real estate professional who did the work to win the listing and generate buyer demand.”

The program stands in contrast to popular referral programs on major portals like Zillow, which send homebuyers who have questions about a listing, not to the listing agent, but to partner agents who pay for those referrals.

Zillow is currently the subject of litigation over “deceptive” tactics with its program formerly known as the “Flex” agent program (now “Preferred” agent program) by a homebuyer who alleged that agent fees to enroll in the program artificially inflate homebuyer costs.

Typical agent-to-agent referral fees in the industry sit at about 25 percent.

“Winning a listing reflects years of relationship-building, trust and hard work,” Neda Nevab, president of Compass, said in a statement. “This program recognizes that effort by giving listing agents greater flexibility in how they handle buyer inquiries, while opening a new opportunity to earn passive income.”

Compass clarified that the Listing Agent Lead and Referral Program is only applicable to Compass brokerage-affiliated agents, and not agents affiliated with any other brands that are now housed under Compass International Holdings.

The firm said that the idea for the new program was generated from Compass real estate professionals, and reflects the brokerage’s commitment to helping agents grow their businesses while creating better experiences for homebuyers and sellers.

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a vote by a group of local Realtor leaders known as the Delegate Body.

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In an apparent response, the brokerages and even one large Realtor association have issued statements in favor of broad disclosure.“The real estate landscape is evolving rapidly. In response, brokerages and even a large Realtor association have issued statements in favor of broad disclosure.“The real estate landscape In this climate, keeping quiet isn’t an option. Transparency does not only benefit business; it also builds public trust. Inman asked it to provide more information about the changes before Monday’s webinar. However, Exp declined. The firm’s exclusive right to sell or lease form would also include a fee disclosure.

Moreover, a new “Con

The firm’s exclusive right to sell or lease form would also include a referral fee disclosure.

Moreover, a new “Consumer Choice in Your Real Estate Transaction” form will outline the consumer’s right to choose their ancillary providers.

The brokerage also said in its statement that its Full Referral Fee Disclosure would expand referral fee disclosures and give clients added clarity.

James Dwiggins, CEO of NextHome, shared the forms online and applauded eXp for leading the way toward greater transparency.

“To be clear, this is in response to NAR governance failing to pass a rule change to Article 6 of the Code of Ethics to require disclosure of referral fees to clients, as well as the new litigation against Zillow regarding referral fees,” Dwiggins wrote.

Also on Wednesday, Benchmark Realty — which operates in Tennessee and Kentucky — updated its policy on disclosures, effective immediately.

The firm said that all referrals — “whether paid or received” — must be disclosed to clients in writing before or at the time of the referral arrangement. The brokerage stated that they were beefing up their policy as a result of the failure by the Delegate Body to pass a rule change to “Our policy is designed to preserve trust, protect consumers, and strengthen professionalism in the industry.”

The Benchmark Realty policy applies many different types of referrals: agent-to-agent referrals, relocation networks, lead-generation platforms, broker-to-broker referrals, marketing or advertising networks that pay agents, and any third-party provider that provides money or other incentives.

Agents who fail to meet the disclosure requirements face termination from the brokerage, the company said.

In addition to eXp and Benchmark Realty, the California Association of Realtors in recent days also publicly expressed support for referral fee transparency. The organization said it was revising its forms accordingly, which will “make it easier to disclose receipt and payment of referral fees.”

Referral fee transparency remains a hot topic among industry professionals, but overall the changes were welcomed on Wednesday by Summer Goralik, a California-based real estate compliance expert.

“If you’re rolling out new policies and forms, that’s fantastic, I commend you,”

Goralik wrote

. It’s great that you are implementing new policies and forms. I commend you,”

Goralik wrote0100

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