Important information regarding rebates

Currently there are approximately 40 states that allow commission rebates to Buyers and only 10 states that prohibit this consumer advantage. The offering of a rebate is viewed as a legal and ethical part of negotiating compensation. Federal regulators have taken the position that such rebates ultimately reduce the cost to consumers. Any attempt to prohibit restrict or discourage the negotiation of commission is considered an illegal restraint of trade under established antitrust law. More information can be found on the United States Department of Justice website at https://www.justice.gov

Any payment of rebate to Buyer shall be disclosed to all parties involved in the transaction, via appearance and description on the HUD-1 form and/or the Closing Settlement Statement.

It is important to note that some Lenders have strict requirements regarding home loans and may prohibit the payment of rebates to Buyer. Additionally, some loan programs may not allow for any closing cost credits and Lenders may treat the rebate as a reduction in sales price, affecting the loan to value ratio. It is Buyer’s responsibility to disclose this rebate to their lender.

You are NOT under any obligation to buy or sell property, however the time you’ve spent researching our site is greatly appreciated. We welcome your questions and comments.