Is it illegal for me to provide my real estate buyer a discount/rebate for purchasing a home using me?

Question

Im a real estate agent and I have other real estate agent friends in other states and we came upon an idea to offer all of our potential customers discounts/rebates for using us to buy or sell a home versus other agents. Putting an ad in the yellow pages for example. Is this illegal in any state? Does anyone know? Also there are online companies that will market my services if I pay them a closing cost once I complete the deal, does anyone know whether that would be considered a referral and If we could get in trouble for that in some states or is that ok since they are calling it a closing cost and its not a percentage of my commission. Thank s

Answer 1

Not as long as it appears on the HUD-1 at closing. Consult an attorney in your state for the final answer.

In Georgia, it is a fairly common practice (says the guy from one of the highest fraud states...). There are so many ways to get yourself into hot water over finances, so navigate those waters carefully.

You can prevent most major issues through disclosure and affiliated business arrangements (ABA's).

Best of luck.

Answer 2

It can be done in my state. I offer a home inspection rebate to all buyers who sign a buyers agency and close within 60 days.
It works quit well.

Answer 3

In Missouri that is an inducement and is illegal. It differs state to state. Good luck

Answer 4

where is your manager???

your manager should be seeing all your ads before you start????

your manager knows what he wants...his company associated with......and may have a better idea...

if you do this without your manager knowing......you could face huge fines.........

good luck

Answer 5

You better do some thing to sell homes.
http://www.breakingbubble.com/