Legal Hotline Spotlight

Q: As part of my marketing efforts, I want to advertise that I will rebate a portion of my commission to buyer clients who use me and close on a transaction. Is there a limit to how much I can offer? And can I offer it only to certain groups (like teachers)?

A: There are no laws or regulations prohibiting you from offering to rebate your commission to your buyers. However, each lender will have different requirements regarding the amount of rebates that can be offered on the settlement statement. If you want to advertise commission rebates, you should always include a disclaimer that they are pending lender approval. Offering rebates to a certain group is not prohibited, but you want to be careful that there won’t be any kind of Fair Housing concerns before doing so.

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Information accurate as of 04/03/23