Compensation is an important conversation between real estate professionals and their clients, and having that conversation early can help establish clarity, transparency, and trust from the beginning of the relationship.
OREF 047 – Advisory Regarding Real Estate Compensation is designed to support those conversations by helping buyers and sellers better understand how real estate professionals are compensated and the choices available to them.
It’s more than a conversation about commission rates. Clients should understand how their compensation agreement works, when compensation may be earned and paid, who receives the compensation, and that compensation rates are negotiable. Compensation can also create potential conflicts of interest during a transaction. OREF 047 addresses these considerations and reinforces the duties agents owe to their clients. Just as importantly, the advisory provides an opportunity to discuss the value of the professional services agents provide, including marketing, negotiation, due diligence, problem-solving, and transaction management.
Make OREF 047 part of the conversation. Providing the advisory early in the client relationship can help set the stage for an informed, productive discussion about compensation, expectations, and the value of your services.
▶️ Watch the Featured Form video and learn how OREF 047 can support clearer, more confident conversations about real estate compensation.
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Always check with your principal broker or legal counsel to ensure that you are following any policy requirements of your brokerage. All comments and responses from OREF or its staff, managers, and volunteers are non-legal opinions made for general purposes. Each Forms subscriber must rely solely upon their Principal broker or personal legal counsel for specific advice and instruction. You and your client should independently confirm that the Form(s) you use are legally suitable for the purposes intended and that they are current with respect to all laws and regulations.
