Are buyer rebate legal in NYC 5 boroughs.

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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
3y

Yes.

They are only illegal in the following 10 states

Alabama, Alaska, Iowa, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, Oregon, and Tennessee.

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    3y

    Yes.

    They are only illegal in the following 10 states

    Alabama, Alaska, Iowa, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, Oregon, and Tennessee.

  • Darson GranthamBusiness Member
    Realtor · Des Moines · Member since 2018 · 304 posts · 253 votes
    3y

    Now being from iowa I’m curious what is a buyer rebate? 

  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    3y
    Quote from @Darson Grantham:

    Now being from iowa I’m curious what is a buyer rebate? 


     It's when you give part of your commission to the buyer.

  • Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
    3y

    Hey @Ken Cai - as far as I'm aware they are, commission rebates can be used by different agents as a means to ensure that the deal gets done in scenarios where the buyer/seller are unhappy with the amount of cash they're having to come up with for closing. 

    In my experience, it's not super common as most agents aren't super happy to give up their commission when closing a deal and would rather not work with clients that recommend this early on in the process.

  • Darson GranthamBusiness Member
    Realtor · Des Moines · Member since 2018 · 304 posts · 253 votes
    3y

    ah, thanks for explaining, I can attest, definitely not legal here in Iowa.  That has to be negotiated with the listing agent. Same result, but a different process.  Although, in my experience agents who discount commissions their own OR the other agent's commission are typically not at the same level of providing service and advice.  I might get some hate, but after a couple of hundred transactions in my short agent career, is VERY transparent, you get what you pay for. 

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