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Real Estate Disclosure of Remuneration

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REAL ESTATE DISCLOSURE OF REMUNERATION

This Disclosure of Remuneration is made to inform the parties to the transaction of the nature, source, amount and conditions of any remuneration, commission, referral fee or other payment related to the disposition of the identified property. The parties listed below acknowledge receipt of this disclosure and that the existence of disclosed remuneration is not, by itself, a waiver of any fiduciary duty or other legal obligation.

Parties

Seller Name:

Buyer Name:

Property Identification

Parcel / APN:    Closing Date (contract):

Broker and Agent Information

Broker Name:    License No.:

Details of Remuneration

The following remuneration is disclosed in connection with the disposition of the identified property. The broker/agent certifies that the amounts and sources below reflect all known payments, offers of payment, or agreements to pay.

Commission (percentage of sale price)     Rate: %

Flat fee     Amount: $

Referral fee or cooperative compensation     Amount: $

Other (describe)

Seller     Buyer     Third Party     If Other / Third Party name:

At closing/escrow disbursement     Upon execution of contract     Other:

Conditions and Contingencies

Is payment of all or any part of the disclosed remuneration contingent on closing or other events?    Yes    No

Acknowledgment and Certification

The broker certifies under penalty of perjury that the information contained in this Disclosure is, to the best of the broker's knowledge, true and complete. The broker further certifies that any known agreements to compensate or to share compensation with any other licensee, entity or person in connection with this transaction are disclosed above.

The undersigned parties acknowledge receipt of this Disclosure of Remuneration prior to entering into a binding agreement for the disposition of the property identified above. Acknowledgment does not indicate approval or consent to the amount disclosed and does not alter or limit any statutory or common law duties of the broker.

Broker Contact:

Legal Provisions

Governing Law: This Disclosure shall be governed by and construed in accordance with the laws of the state in which the property is located. Any dispute arising from or relating to this Disclosure shall be subject to the jurisdiction of the courts of that state.

Entire Agreement: This Disclosure, together with any referenced and executed agreements between the parties, constitutes the entire understanding relating to disclosed remuneration and supersedes any prior or contemporaneous oral statements or representations concerning the same.

Remedies and Remedies for Nondisclosure: Failure to make required disclosures may subject the disclosing party to civil penalties, rescission rights, or other remedies under applicable law. This Disclosure does not limit the parties' rights to pursue statutory or equitable relief.

Seller

Party Label:

By:

Date:

Buyer

Party Label:

By:

Date:

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What the Real Estate Disclosure of Remuneration Is

The Real Estate Disclosure of Remuneration is a written statement provided to a property owner, buyer, seller, or tenant that itemizes any fees, commissions, or payments a real estate licensee or third party will receive in connection with a transaction. It clarifies who is paying whom, the amounts or percentages involved, and any circumstances that might change compensation. The disclosure supports transparency, helps avoid conflicts of interest, and creates a clear record for parties and regulators while aligning with state disclosure rules and applicable federal e-signature laws.

Why a Clear Disclosure Matters

A clear Real Estate Disclosure of Remuneration reduces disputes, documents consent to payments, and fosters regulatory compliance. It protects clients by making compensation transparent and helps licensees demonstrate good-faith disclosures to state real estate commissions and, where applicable, in electronic records governed by ESIGN and state statutes.

Why a Clear Disclosure Matters

Who Prepares and Receives This Disclosure

Typical users who prepare or receive this disclosure include real estate agents, brokers, sellers, and closing attorneys.

  • Listing agents and brokers disclosing commissions and referral fees to sellers and cooperating brokers.
  • Buyers and buyer's agents documenting any buyer-side incentives or rebate arrangements.
  • Title companies and escrow officers verifying compensation details during closing paperwork.

Use the disclosure early in negotiations and keep a signed copy with closing records for audit and compliance.

Step-by-Step: Filling Out the Disclosure

Follow these steps to complete the Real Estate Disclosure of Remuneration accurately before listing, offer acceptance, or closing.

  • 01
    Gather Parties: Collect full legal names and contact details for all parties.
  • 02
    List Compensation: Enter amounts, percentages, and payer identity.
  • 03
    Attach Evidence: Include fee agreements or prior communications.
  • 04
    Sign & Store: Obtain signatures, date, and retain copies in closing file.

Essential Data Points to Include

Parties Involved: Buyer, seller, licensee names and contacts.
License Details: State license number and board.
Compensation Terms: Amount, percentage, and payment triggers.
Payment Source: Party paying fees or third-party payer.
Effective Date: Date payments become payable.
Signatures and Dates: Signed by parties and licensee.

Penalties and Risks of Incorrect Disclosures

Commission Recovery: State commissions may reclaim payments.
Civil Fines: Regulator penalties for nondisclosure.
Withholding Risk: Backup withholding may apply.
Contract Voidance: Agreements risk rescission.
Delays in Closing: Title or escrow holds possible.
Criminal Exposure: Intentional fraud may carry charges.

Common Preparation Mistakes to Avoid

  • Failing to identify the actual payor (listing broker, buyer, or third party) creates ambiguity that can lead to commission disputes and regulatory inquiries.
  • Using vague language such as 'reasonable fee' or 'market rate' instead of specific dollar amounts or percentages undermines enforceability and clarity for all parties.
  • Not updating the disclosure when referral payments or bonuses change during negotiation risks post-closing disputes and may trigger repayment obligations.
  • Omitting signature dates or using inconsistent date formats complicates recordkeeping and may affect when compensation obligations legally take effect.

Where to Send or File the Disclosure During the Transaction

This section outlines where to file, send, or provide the disclosure during the transaction lifecycle and at closing.

  • To Seller: Deliver signed disclosure with listing documents.
  • To Buyer: Provide before offer acceptance or at delivery.
  • To Title: Include in closing packet for escrow review.
  • To Regulator: File or produce on request during audits.

Digital Signing and Platform Requirements

Use secure eSignature platforms that comply with ESIGN, UETA, and HIPAA as applicable to transmit and store disclosures.

  • Authentication: Email or SMS code; consider KBA for high-risk transactions.
  • Document Formats: PDF, DOCX and native templates supported.
  • Retention: Tamper-evident storage and audit trail.

How to Configure an Online Disclosure Workflow

Set up an online workflow to collect the Disclosure of Remuneration with conditional fields, signer order, and mandatory attachments.

Field Configuration
Signer Order Licensee signs before other parties for disclosure acknowledgment.
Conditional Field Show referral field if third-party payer selected.
Attachment Require attached fee agreements or executed referral letters.
Authentication Email link with optional SMS code for signer verification.

eSignature Pricing and Feature Comparison

Compare common eSignature plans and features relevant for completing Real Estate Disclosure of Remuneration and managing secure electronic records.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial, no credit card required Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Key Timelines and Deadlines to Observe

Key timing for disclosures, signature, and related tax or closing deadlines to reduce penalties and ensure compliance.

Disclosure Delivery Timing:

Provide disclosure before offer acceptance or at first substantial contact.

Signature Deadline:

Sign prior to closing or as specified in contract.

Tax Reporting Impact:

Maintain records for potential 1099 reporting and backup withholding.

Audit Production Window:

Be prepared to produce records within regulator request periods.

Retention Start Date:

Starts on effective or signature date as specified here.

Notarization and Witness Steps When Required

Steps for notarization and witnessing when state law or transaction terms require authentication of the disclosure document.

01

Prepare Document

Ensure disclosure complete and dated before scheduling notary or witnesses.

02

Select Notary

Choose RON or in-person notary per state rules.

03

Identity Proofing

Signers present ID or complete KBA for remote notarization.

04

Record Session

For RON, maintain audio-video recording and retain per state law.

05

Witness Attestation

Gather required number of witnesses and statements as prescribed.

06

Notary Acknowledgement

Notary signs and stamps the acknowledgment block on the document.

07

Record Journal

Notary logs the act in a notarial journal where required.

08

File with Closing

Add notarized disclosure to closing package for title and escrow.

Core Elements of a Professional Disclosure

Essential sections a professional disclosure should include to be complete, auditable, and enforceable across jurisdictions and electronic workflows, and to support closing and tax processes.

Parties Identified

List full names, contact details, and license numbers of all licensees and parties so responsibilities and payor relations are unambiguous for closing and audit reviews.

Compensation Details

State exact dollar amounts or percentage formulas, describe how reimbursements or bonuses apply, and explain any contingencies that could alter payment amounts post-closing adjustments thereafter.

Payment Conditions

Clarify when payments are due, conditions for release, and whether escrow or title will disburse funds to the payee per contractual instructions and state law.

Conflicts of Interest

Disclose relationships, referral arrangements, or ownership interests that could influence compensation; specify whether informed consent has been obtained from affected parties and attach consent documentation.

Attachments & Evidence

Attach fee agreements, referral letters, brokerage invoices, or written authorizations that substantiate amounts and the payer's authority to obligate funds for closing disbursement and audit trails.

Audit Trail

Record timestamps, signer IP, signature method, and version history to support authenticity, ESIGN compliance, and potential regulatory inspection and retain exportable copies for 3+ years.

Export, Storage, and Supporting Document Features

Practical export and document support features to keep disclosures accessible, portable, and compatible with title, escrow, and regulatory reviews and audit requests.

Download PDF

Provide a secured, flattened PDF version with embedded audit trail metadata so title and escrow can archive the signed disclosure without losing signature evidence or authenticity.

Export Data

Extract structured fields (names, amounts, dates) to CSV or Excel for accounting, 1099 processing, and recordkeeping reconciliation and integrate with ERP or title systems via API.

Attach Package

Bundle the disclosure with contract, commission invoices, and closing statements to create a single closing exhibit for auditors and external reviewers and regulatory submissions when required.

Supporting Docs

Store correspondence, emails, and signed referral agreements alongside the disclosure to substantiate negotiations and payment authorizations during audits and retain per retention policy and produce on demand.

Practical Examples from Transactions

Two real-world examples showing how the Real Estate Disclosure of Remuneration is used in a sale and a rental referral.

Residential Sale

A listing broker disclosed a 3% cooperating commission and a $500 buyer rebate on the disclosure before accepting offers to avoid disputes.

  • Buyers compared net proceeds and negotiated.
  • The signed disclosure was included in the closing package, which prevented a post-closing commission claim and provided evidence for the broker's compliance with state disclosure rules and expedited escrow's approval of commission disbursement.

Rental Referral

A property manager disclosed an incoming referral fee paid by a relocation company on the rental disclosure at lease signing to the tenant.

  • Tenant accepted after full disclosure.
  • Keeping the signed electronic disclosure in the tenant file removed ambiguity, supported accounting entries for the referral payment, and complied with the manager's internal audit procedures and reduced future disputes with tenants and relocation firms.

Practical Best Practices for Accuracy and Efficiency

Practical tips to ensure disclosures are accurate, timely, and defensible across digital and paper workflows.

Verify the identity of the payer
Confirm payer's legal authority to make payments, match their name to government ID or business registration, and retain supporting documents. Mismatched payer information can create payment disputes and trigger withholding or regulatory review; accurate identity reduces friction at closing.
Use explicit dollar amounts or percentages
Avoid vague phrases. State currency, decimal notation, rounding rules, and any caps or floors. If percentages apply, define base (gross sale price versus net proceeds). Clear monetary terms prevent interpretation disputes and support accurate tax reporting or 1099 determinations.
Maintain version history and document revisions
Timestamp each revision, preserve prior versions, and log who made changes. Use tamper-evident PDFs and audit trails so auditors can reconstruct the disclosure lifecycle. Retain exportable copies for the required retention period aligned with IRS, state, and industry rules.
Obtain and document informed consent to fees
Provide a clear consumer disclosure where required by ESIGN, explaining the right to paper, how to withdraw consent, and confirming the signer's ability to access electronic records. Store the consent record with the disclosure to demonstrate compliance if challenged.

Who Signs and Who Executes

Jane Doe, Broker

Jane Doe, Broker — Responsible for preparing the disclosure, listing the compensation terms, and obtaining seller acknowledgment. She records the disclosure in the transaction file and provides a signed copy to title and the buyer's agent to ensure clarity during closing and potential audits.

John Smith, Attorney

John Smith, Closing Attorney — Reviews the disclosure for legal sufficiency, confirms compensation terms align with closing statements, and advises on any state-specific requirements. He retains the signed disclosure in the client closing folder and produces it in response to regulatory inquiries.

Frequently Asked Questions

Answers to frequent questions about completing, signing, and preserving the Real Estate Disclosure of Remuneration in electronic and paper formats.


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