Commission Rebates and How to Properly Disclose the Offering

If I represent the seller, can I advertise that I will rebate part of my commission to the buyer? 

A: Yes, but the ad must disclose that payment of the rebate is subject to the consent of the seller and if the rebate is contingent upon certain restrictions, such as the use of a particular service provider, the ad must contain a disclosure that payment of the rebate is subject to restrictions. [Rule 535.154(m)] A sales agent must also have their sponsoring broker's authorization to offer a rebate.

However, a rebate to a buyer from a license holder may be subject to restrictions by the buyer’s lender. You should contact your broker or private attorney to find out how you should notify and obtain the consent of the buyer’s lender to address any impact the rebate may have on the determination regarding the buyer’s creditworthiness. 

Stay Compliant and Always Disclose, Disclose, Disclose!