Commission rebate

[Jay Yu]

Hi, I have seem so many real estate agents rebating their commission back to their clients. Competition is tough and I think thinking something along the line. How is that legal? Does it have to be credit towards closing? Does it need to be included in the contract and singed by both parties? How does it work ? Please advise and share if you are do something similar. Thank you

[Kevin Fox]

Hey @Jay Yu

I'm sure it differs from state to state, but in California agents can only give credits that are to be used towards their clients' closing costs. 

Typically, when I've credited buyers for various reasons in the past, my transaction coordinator will just email the escrow officer alerting them of the credit and cc me on it. The escrow officer normally just replies asking that I confirm. I do. And VIOLA!

It is not something I do very regularly, but will if it's needed to make a deal work out.