Hire me to represent you on the purchase of your home and I will rebate up to 1.5% of the sales price (up to half of the selling agent commission) to you as a credit towards your closing costs or up to a 1.5% reduction in the sales price.
Is This Legal?
Yes. Below is an excerpt from the Department of Justice. It states that real estate agents may rebate a portion of their commission to the borrower in a real estate transaction.
May a real estate agent rebate a portion of the agent's commission to the borrower? If so, how should the rebate be listed on the HUD-1?
According to HUD, yes, real estate agents may rebate a portion of the agent's commission to the borrower in a real estate transaction. The rebate must be listed as a credit on page 1 of the HUD-1 in Lines 204-209 and the name of the party giving the credit must be identified. Real estate agent or broker commission rebates to borrowers do not violate Section 8 of RESPA as long as no part of the commission rebate is tied to a referral of business.
San Jose, CA 95125