Commission Rebates
Source: Jim Sexton, Broker - John Hall & Associates
Today I was reading our John Hall & Associates Interactive Broker Update and our Broker Jim Sexton had a simple reminder on Commission Rebates...
"Just a reminder concerning recent law changes and the impact on the previously acceptable practices regarding commission rebates. While in the past it was alright to pay the buyer a "rebate"/commission reduction after closing, with last year’s Mortgage Fraud legislation this practice is no longer acceptable. It can still be done as long as it meets certain conditions:
1. It must be on the contract.
2. The lender must be aware of it.
3. It must be on the HUD 1.
This applies to any reductions that an agent makes.
Good reminder.................
Today I was reading our John Hall & Associates Interactive Broker Update and our Broker Jim Sexton had a simple reminder on Commission Rebates...
"Just a reminder concerning recent law changes and the impact on the previously acceptable practices regarding commission rebates. While in the past it was alright to pay the buyer a "rebate"/commission reduction after closing, with last year’s Mortgage Fraud legislation this practice is no longer acceptable. It can still be done as long as it meets certain conditions:
1. It must be on the contract.
2. The lender must be aware of it.
3. It must be on the HUD 1.
This applies to any reductions that an agent makes.
Good reminder.................
Great advice about home buyer rebates; always disclose them to the lender.
In addition to the rebate, a buyer should seek out a good buyer’s agent who is focused on saving the buyer money through strong negotiations throughout the entire transaction.
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