Real estate rebates are incentives to attract clients. Used mostly with residential buyers, real estate rebates are a marketing tool to attract buyers to a brokerage. A portion of the commission offered by the seller’s broker to the agent representing the buyer is credited (rebated) to the buyer at or after closing.
The payment of the rebate is subject to the consent of the party the license holder represents in the transaction. A rebate may be subject to restrictions by the buyer’s lender. A buyer must obtain consent from buyer’s lender to address any impact the rebate may have on the determination regarding the buyer’s creditworthiness.