5,256,911
Yes, it is allowed in NC & SC. All parties need to be notified. In fact, I had one this week that we didn't know about until Closing but, thankfully, it was a cash deal and all parties signed the HUD-1 (including the rebated amount) in agreement.
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Steve Higgins
Kelowna, BC
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John Juarez
Fremont, CA
-
Lyn Sims
Schaumburg, IL
-
Nina Hollander, Broker
Charlotte, NC
-
Kasey & John Boles
Boise, ID
-
Peter Testa
Danbury, CT
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
-
Roy Kelley
Gaithersburg, MD
-
Fred Griffin Florida R...
Tallahassee, FL
1,057,254
The only person that can be paid a commission in Arizona is a licensed RE Broker. So commission rebates would have to be called something else on the HUD.
Typically they are called a credit to the buyer from the seller and the RE commission is simply reduced commensurate with that credit and the figure changed on the HUD.
If the buyer is getting a credit, why not just amend the contract to reduce the purchase price.
Or to reduce some figure that the buyer would have to bring to close.
There are several ways to do this, but it's dicey when it comes to paying RE Commission to an unlicensed person.
Plus the lender may not allow it under some circumstances.
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John Juarez
Fremont, CA
-
Lyn Sims
Schaumburg, IL
-
Nina Hollander, Broker
Charlotte, NC
-
Peter Testa
Danbury, CT
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
-
Candice A. Donofrio
Fort Mohave, AZ
-
Roy Kelley
Gaithersburg, MD
-
Fred Griffin Florida R...
Tallahassee, FL
3,350,289
It is done in the Land of Oz, California. I see it done in various ways. More in the form of a credit to buyer or seller at closing ... and yes, the lender must always be informed.
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John Juarez
Fremont, CA
-
Ryan Huggins - Thousan...
Thousand Oaks, CA
-
Nina Hollander, Broker
Charlotte, NC
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
-
Pete Xavier
Pacific Palisades, CA
-
Fred Griffin Florida R...
Tallahassee, FL
-
Richie Alan Naggar
Riverside, CA
5,115,152
Yes it's allowed, but I almost never see it happen. I don't give rebates, but if it's a repeat or double-sided client (both selling and buying) I will adjust my commission accordingly.
-
Debra Leisek
Homer, AK
-
Bob "RealMan" Timm
Minot, ND
-
Steve Higgins
Kelowna, BC
-
Fred Griffin Florida R...
Tallahassee, FL
-
Richard Bazinet /MBA, ...
Scottsdale, AZ
-
Peter Testa
Danbury, CT
-
Debe Maxwell, CRS
Charlotte, NC
-
Candice A. Donofrio
Fort Mohave, AZ
4,583,484
Is this a semantics lesson? Is commission used here instead of another word/term?
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Bob "RealMan" Timm
Minot, ND
-
Steve Higgins
Kelowna, BC
-
Lyn Sims
Schaumburg, IL
-
Nina Hollander, Broker
Charlotte, NC
-
Peter Testa
Danbury, CT
-
Debe Maxwell, CRS
Charlotte, NC
-
Fred Griffin Florida R...
Tallahassee, FL
5,772,593
When we had our company in CA, we could not do it. I am not sure what is happening now. We can only give a referral people to someone that has a real estate license. A
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Richard Bazinet /MBA, ...
Scottsdale, AZ
-
Debe Maxwell, CRS
Charlotte, NC
-
Nina Hollander, Broker
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
-
Fred Griffin Florida R...
Tallahassee, FL
-
Roy Kelley
Gaithersburg, MD
519,324
Washington State does, we are the home of Redfin (Unfortunately). Everything must be disclosed on the settlement statement.
-
Sam Shueh
San Jose, CA
-
Lyn Sims
Schaumburg, IL
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
-
Roy Kelley
Gaithersburg, MD
-
Fred Griffin Florida R...
Tallahassee, FL
5,583,328
I'm not sure....I know I've not heard of anyone ever doing that....reducing it, yes....but not gifting it...
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Richard Bazinet /MBA, ...
Scottsdale, AZ
-
Nina Hollander, Broker
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
-
Roy Kelley
Gaithersburg, MD
-
Debe Maxwell, CRS
Charlotte, NC
-
Fred Griffin Florida R...
Tallahassee, FL
716,529
Got to thread carefully Fred in regards to federally funded loans as part of the settlement of a real estate transaction. For example anything that may look like or smell like mortgage fraud, or the participation of an agent in providing a financial incentive to close. I'm sure it's done in AZ in a underhanded manner, but certainly not part of my practice.
The point is that once your transaction is closed, and your commission is paid out, heck, you can do whatever you want with your money - such as give it away.
In AZ, we have rules. One of those rules, is that you cannot incentive a party in selling or buying a property or to influence a party to act based on a financial incentive from a licensed agent.
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Nina Hollander, Broker
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
-
Roy Kelley
Gaithersburg, MD
-
Kathleen Daniels, Prob...
San Jose, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Fred Griffin Florida R...
Tallahassee, FL
2,401,675
I believe ND is the same as Florida Fred Griffin
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Steve Higgins
Kelowna, BC
-
Nina Hollander, Broker
Charlotte, NC
-
Peter Testa
Danbury, CT
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Roy Kelley
Gaithersburg, MD
-
Fred Griffin Florida R...
Tallahassee, FL
1,554,227
Yes, and I do so for my Military clients and repeat clients that have sent me referrals since they last bought.
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Clay R. Seay
Saint Augustine, FL
-
Bob "RealMan" Timm
Minot, ND
-
Fred Griffin Florida R...
Tallahassee, FL
-
Debe Maxwell, CRS
Charlotte, NC
-
Nina Hollander, Broker
Charlotte, NC
-
Thomas J. Nelson, REAL...
La Jolla, CA
430,762
Yes we have a company here that that is there business model. They pay the buyers to induce them to use them for their real estate transactions.
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Bob "RealMan" Timm
Minot, ND
-
Lyn Sims
Schaumburg, IL
-
Nina Hollander, Broker
Charlotte, NC
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Fred Griffin Florida R...
Tallahassee, FL
2,785,156
I believe CA will allow it...I would like confirmation however
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Nina Hollander, Broker
Charlotte, NC
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
-
Roy Kelley
Gaithersburg, MD
-
Fred Griffin Florida R...
Tallahassee, FL
1,325,114
California allows a credit to a client whether buyer or seller. Yes, must be within the parameters of what the lender, if there is one, will allow as far as buyer credit is concerned. It can be done through a commission reduction for sellers or a closing cost credit for buyers.
Let’s remember…we are talking a about a credit to a client, not a referral payment to an unlicensed person. The latter is illegal.
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Clay R. Seay
Saint Augustine, FL
-
Bob "RealMan" Timm
Minot, ND
-
Debe Maxwell, CRS
Charlotte, NC
-
M.C. Dwyer
Felton, CA
-
Fred Griffin Florida R...
Tallahassee, FL
2,072,576
Totally legal in Illinois, as well as 39 other states in the union to pay (or rebate) a fee to the buyer or seller in the transaction... even if they are not a licensed Realtor.
It does not have to appear on the closing statement (we no longer have a HUD-1), and can be paid outside of closing. It's nobody's business but our own.
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Clay R. Seay
Saint Augustine, FL
-
Bob "RealMan" Timm
Minot, ND
-
Fred Griffin Florida R...
Tallahassee, FL
-
Debe Maxwell, CRS
Charlotte, NC
1,847,471
Yes IL allows it, I do not.
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Bob "RealMan" Timm
Minot, ND
-
M.C. Dwyer
Felton, CA
-
Fred Griffin Florida R...
Tallahassee, FL
-
Peter Testa
Danbury, CT
-
Debe Maxwell, CRS
Charlotte, NC
809,258
Yes, Idaho allows a rebate to any party to the contract - buyer, seller, etc. -Kasey
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Bob "RealMan" Timm
Minot, ND
-
Lyn Sims
Schaumburg, IL
-
Nina Hollander, Broker
Charlotte, NC
-
Debe Maxwell, CRS
Charlotte, NC
-
Fred Griffin Florida R...
Tallahassee, FL
759,785
It's done in Connecticut.
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Bob "RealMan" Timm
Minot, ND
-
Steve Higgins
Kelowna, BC
-
Nina Hollander, Broker
Charlotte, NC
-
Debe Maxwell, CRS
Charlotte, NC
-
Fred Griffin Florida R...
Tallahassee, FL
6,422,203
I am not desperate enough to consider it, and would never hire an agent who offered to do something like this.
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Bob "RealMan" Timm
Minot, ND
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Fred Griffin Florida R...
Tallahassee, FL
-
Bob Crane
Stevens Point, WI
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
3,988,013
TN does not but there are ways around it like a reduction in commission and credited monies to come in the form of a gift card to a local home improvement store.
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Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Fred Griffin Florida R...
Tallahassee, FL
-
Bob "RealMan" Timm
Minot, ND
-
Roy Kelley
Gaithersburg, MD
921,504
Yet bet 'inducements' are alive and well in Florida.
And 'RP Lending' recently started a real estate marketing company so the lender provides LARGE inducements in addition to agent rebate.
Yep, inducements are alive and well in Florida.
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Bob "RealMan" Timm
Minot, ND
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Fred Griffin Florida R...
Tallahassee, FL
-
Debe Maxwell, CRS
Charlotte, NC
-
Lyn Sims
Schaumburg, IL
4,272,934
Yes but not to a third party...
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Bob "RealMan" Timm
Minot, ND
-
Fred Griffin Florida R...
Tallahassee, FL
-
Debe Maxwell, CRS
Charlotte, NC
-
Nina Hollander, Broker
Charlotte, NC
4,319,773
Fred Griffin - gift money goes to the broker. The consumers are NOT supposed to get paid from any of the brokers - just my two cents.
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Bob "RealMan" Timm
Minot, ND
-
Fred Griffin Florida R...
Tallahassee, FL
-
Debe Maxwell, CRS
Charlotte, NC
-
Nina Hollander, Broker
Charlotte, NC
1,624,953
Yes, we can do it via escrow, so a principal can use it for closing costs or however they want. Lenders also do rebates this way.
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Bob "RealMan" Timm
Minot, ND
-
Nina Hollander, Broker
Charlotte, NC
-
Debe Maxwell, CRS
Charlotte, NC
-
Fred Griffin Florida R...
Tallahassee, FL
7,869,077
I am uncertain.
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Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Fred Griffin Florida R...
Tallahassee, FL
-
Bob "RealMan" Timm
Minot, ND
716,452
This is illegal in Oregon. All commission must be paid to a licensed real estate brokerage.
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Bob "RealMan" Timm
Minot, ND
-
Debe Maxwell, CRS
Charlotte, NC
-
Fred Griffin Florida R...
Tallahassee, FL
4,904,820
Yes, any party to the transaction as long as there is full disclosure.
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Bob "RealMan" Timm
Minot, ND
-
Debe Maxwell, CRS
Charlotte, NC
-
Fred Griffin Florida R...
Tallahassee, FL
766,569
We in California are allowed to give our clients up to 100% of our commission at the closing if it is disclosed. The after closing gift is limited to $500
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Bob "RealMan" Timm
Minot, ND
-
Debe Maxwell, CRS
Charlotte, NC
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Fred Griffin Florida R...
Tallahassee, FL
3,168,114
Rebates are only banned in 10 states. However, I never "rebate" after closing. I always only ever offer a credit when I am in fact negotiating from my firm's standard fees.
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Bob "RealMan" Timm
Minot, ND
-
Debe Maxwell, CRS
Charlotte, NC
-
Fred Griffin Florida R...
Tallahassee, FL
1,435,300
Yes this is common pratice and yes it must be diclosed to the lender.
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Bob "RealMan" Timm
Minot, ND
-
Debe Maxwell, CRS
Charlotte, NC
-
Fred Griffin Florida R...
Tallahassee, FL
1,506,613
California allows it, so long as it's disclosed to the banks. It's done in the form of a credit towards closing costs, but can turn into a check if it exceeds closing costs (at least according to the Broker exam study book I read).
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Bob "RealMan" Timm
Minot, ND
-
Debe Maxwell, CRS
Charlotte, NC
-
Fred Griffin Florida R...
Tallahassee, FL
577,750
We cannot do it here, not allowed... nor can we personally provide money back to the Seller or Buyer. All commission received on the sale or purchase goes to the Brokerage...
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Bob "RealMan" Timm
Minot, ND
-
Debe Maxwell, CRS
Charlotte, NC
-
Fred Griffin Florida R...
Tallahassee, FL
902,238
In CT, only to your PRINCIPALS, that is if you have a signed agency relationship with them.
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Bob "RealMan" Timm
Minot, ND
-
Debe Maxwell, CRS
Charlotte, NC
-
Fred Griffin Florida R...
Tallahassee, FL
5,243,218
Disclosure is the key! Make sure it is in the contract so all are on a level playing field!
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Bob "RealMan" Timm
Minot, ND
-
Fred Griffin Florida R...
Tallahassee, FL
-
Debe Maxwell, CRS
Charlotte, NC
3,416,038
In NH the law is up to $50 to a non licensed person.
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Bob "RealMan" Timm
Minot, ND
-
Fred Griffin Florida R...
Tallahassee, FL
-
Debe Maxwell, CRS
Charlotte, NC
3,071,489
AZ allows it providing it's fully disclosed and appears as a credit to someone on the Closting Disclosure...
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Bob "RealMan" Timm
Minot, ND
-
Fred Griffin Florida R...
Tallahassee, FL
-
Debe Maxwell, CRS
Charlotte, NC
4,800,132
I'm in Florida also, so, yes.
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Bob "RealMan" Timm
Minot, ND
-
Fred Griffin Florida R...
Tallahassee, FL
-
Debe Maxwell, CRS
Charlotte, NC
4,434,177
Disclose.
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Bob "RealMan" Timm
Minot, ND
-
Fred Griffin Florida R...
Tallahassee, FL
-
Debe Maxwell, CRS
Charlotte, NC
213,263
I give them all the time! Well, not all the time but to past clients as a loyalty bonus. As long as its to a principal and documented.
-
Bob "RealMan" Timm
Minot, ND
-
Fred Griffin Florida R...
Tallahassee, FL
-
Debe Maxwell, CRS
Charlotte, NC
5,878,935
CO does also, just have to disclose to the lender.
-
Bob "RealMan" Timm
Minot, ND
-
Fred Griffin Florida R...
Tallahassee, FL
87,920
Yes.
-
Bob "RealMan" Timm
Minot, ND
-
Fred Griffin Florida R...
Tallahassee, FL
1,242,104
RF advertises that they rebate ~0.5% back to buyer in CA.
-
Bob "RealMan" Timm
Minot, ND
-
Fred Griffin Florida R...
Tallahassee, FL
1,712,876
Not here.
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Bob "RealMan" Timm
Minot, ND
-
Fred Griffin Florida R...
Tallahassee, FL
889,505
Alaska does not allow rebates, as i understand it we are one of 10 states that doesnt allow it
-
Fred Griffin Florida R...
Tallahassee, FL
5,062,625
Yes it can be done as a credit to the buyer or seller here in CA and yes a lender must be informed if a credit to the buyer.
-
Fred Griffin Florida R...
Tallahassee, FL
1,045,440
Virginia also permits this I think there are about 8-10 states the prohibit this though Fred Griffin
-
Fred Griffin Florida R...
Tallahassee, FL
2,918
Do you use a regular addendum or a specific form to be signed by all parties when offering a rebate for a client?