Brokerage Disclosure of Referral Agreements
📖 2 min read
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Brokerage Referral Fee Disclosure
The signed disclosure of all referral fee obligations on the transaction.
Lesson 5 of the Required Disclosures course. When Scofield Group receives a client through a referring party — Zillow, an out-of-state agent, an online portal, an affiliated service provider — the brokerage is contractually obligated to pay a referral fee.
💵 The money flow
Referral fees are paid FIRST, off the top from GCI. AFTER referral fees and rebates are deducted, the remaining commission is then subject to brokerage agent compensation splits. Agent compensation is based on the NET commission after all referral obligations have been met.
General rules
- Referral fees are paid from gross commission income (GCI) generated under the fully executed Pre-Showing Brokerage Agreement, Buyer Brokerage Agreement, and/or Listing Agreement.
- Referral fees are disbursed by SG upon close of escrow, provided compensation has been earned.
- Referral fee payments comply with federal law, state law, and Nevada real estate regulations.
- Nevada law permits referral fees only to licensed real estate professionals holding an active license — no fee to unlicensed individuals or entities.
Section 1 — Zillow Group Referral Fee Program
Scofield Group is a Zillow Preferred Team in Las Vegas under a Marketing Services Agreement with Zillow. SG receives Buyer and Seller clients through Zillow Preferred Connections, Zillow Inquiries, Zillow Seller Connections, and related lead products.
Zillow Referral Fees apply for two (2) years from initial introduction OR two (2) closed transactions, whichever occurs first.
Zillow Preferred Referral Fee Schedule (by purchase price):
- $0 – $99,999: 15% of GCI
- $100,000 – $199,999: 25% of GCI
- $200,000 – $299,999: 30% of GCI
- $300,000 – $399,999: 35% of GCI
- $400,000 and above: 40% of GCI
- Zillow Seller Connections: 40% of GCI at close of escrow
These referral fees are paid first, off the top from GCI. After referral fees and rebates are deducted, remaining commission is subject to brokerage agent compensation splits.
Section 2 — Scofield Group Agent Compensation Structure (Post-Referral)
- 60% Agent / 40% Brokerage — Company-provided clients (Zillow, EZ Home Search, Ylopo, all Brokerage-supplied lead sources).
- 80% Agent / 20% Brokerage — Sphere of Influence and self-generated business.
Agent compensation is based on net commission after all referral obligations have been met.
📊 Why this matters
Understand exactly how your check is calculated: GCI → referral fees off the top → remainder → company-vs-sphere split → your share. Disclose this to every client at the start of the relationship.