Commision Rebating - state by state legaility

7 Replies

Does anyone here have (or can direct to) a list of states where real estate commission rebating is or isn't legal?

AZ, CA, and ID are where I am most interested.



Most states you cannot pay non licensed people kick backs for commissions.

you can though just not charge what you would normally charge.

so if your normal fee was 6% to double end and you wanted to only charge 3% nothing wrong with that

I thought the Feds came out and said rebating commissions to buyers was perfectly allowable as it lowered the cost of home buying.

Kickbacks to others except the buyer? That wouldn't be allowed.

Google the DOJ regarding rebates, they show which states have banned them, only 10 states forbid them. 

@Jim OConnell in what context are you referring? There are many different ways commissions can be used. 



Joel, Thanks so much for the link. 

Jeff,  My son has recently joined our operation to help with finding and managing our properties. He has completed his real estate courses and will be testing in weeks in a few weeks.

He will be our agent when buying listed houses or with owners selling through a RE agent. I thought it would also make sense for him to work with other investors in the areas we are active in, offering to rebate commission on  properties they might want to buy.  

We have found it a challenge to get real estate agents who understand investor criteria. I was at a REIA meeting last week with over a hundred investors, and fewer than 5 agents. Three of them walked out after listening to the Haves/Wants portion of the meeting and hearing the meeting leader talk about educating agents to work with investors.

First me must remember the 87% failure rate for Realtors.... Many of them don't have the core business fundamentals it takes to survive. Many I have spoken to actually dislike working with investors for various reasons.

Being an investor prior to becoming a Realtor, I love working with investors and I cant quite understand whats wrong with the others. I chalk it up to lack of knowledge, and I'm sure those agents feel like they are listening to a foreign language when they start hearing GRM, CAP, CAPEX, and more acronyms then they know what to do with!

As for Rebates, I believe in them highly. The way we buy real estate is not the same as it was even 10 years ago. Buyers agents dont need to do near the work as before. I offer all my clients rebates, and it works out well for investors as well.

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