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Cash back to Clients?

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Cash back to Clients?

Can I rebate money back to my customer if they don’t have a real estate license?

I’ve had this question asked several times over the years.  The answer is YES so long as they are a party to the transaction and you are fully disclosing to all interested parties.

In general you are not allow to compensate an unlicensed person.  However, FREC made an exception to the rule.  Here is their take on the matter:

Although Section 475.25(1) (h), Florida Statutes, generally provides that a licensee may not share real estate compensation with an unlicensed person, Rule 61J2-10.028(2), Florida Administrative Code, creates an exception: “The sharing of brokerage compensation by a licensee with a party to the real estate transaction with full disclosure to all interested parties is not considered a violation of Chapter 475, Part I, Florida Statutes.” Please note that “all interested parties” should conservatively include any person or entity involved in the deal. For example, the buyer’s lender would need to know about this rebate, as it could impact the lender’s loan calculations. 

So there you have it!  It’s perfectly legit to disburse rebates to your customers if you choose to do so under certain conditions.  Next week, I’m going to cover another spin on this topic that includes Charitable Rebates.


Until then, enjoy your weekend!!!  We’ll see you around the campus real soon…Thanks, JB

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