Update on NAR Referral Fee Proposal

At the recent NAR meetings in November, the NAR Professional Standards Committee, Executive Committee and Board of Directors reviewed and approved a proposal to increase fee transparency for consumers by amending the NAR Code of Ethics to require the disclosure of real estate referral fees, which are currently exempt from disclosure under Article 7. But at the final step of the process – the NAR Delegate Body – the proposal failed to pass because it didn’t meet the required 2/3 majority for approval.  

Since the proposal didn’t pass, there is no legal or ethical requirement for brokers to immediately change their current policies on disclosing referral fees, though every broker can make an independent decision on whether they choose to update their individual policies as PAR studies the issue and we await further information from NAR on whether a similar proposal will be brought forward at their June meetings.  

“The Pennsylvania Association of Realtors® believes that real estate consumers should have transparency in the fees they are paying in a real estate transaction,” says Bill Lublin, PAR’s 2025 President. “PAR is supportive of the concepts behind these proposed changes, which would require amending the Realtor® Code of Ethics,” Lublin added. “This proposal was a positive first step, even though it did not ultimately get adopted. If this issue returns at a future date, we hope it gets a thorough debate and review by the board and the delegate body.”  

In the meantime, PAR will explore existing policies and forms to see what opportunities may exist to enhance fee transparency, mitigate risk and incorporate best practices for our members. Any potential changes will be thoroughly vetted by relevant member committees and counsel, with an eye towards ensuring that any changes would align with future proposals from NAR that may be made at the NAR Legislative Meetings in June 2026.