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REAL ESTATE REBATES OK: MONTANA BOARD OF REALTY REGULATION PERMITS RE REBATES

By Taunya Fagan Bozeman Real Estate

Real Estate Broker/Owner with ESTATE House, Bozeman Real Estate RRE-BRO-LIC-61433

April 02, 2008 02:02 PM

IN MONTANA REAL ESTATE BROKERS MAY ONCE AGAIN OFFER REBATES TO CONSUMERS

The Department of Justice announced today that the Montana Board of Realty Regulation has pulled back the rule disallowing real estate brokers from offering rebates and other incentives to clients. This action is a response to a recent Department of Justice Antitrust Division investigation. The DOJ stated the rule change will help consumers to locate real estate services in Montana by removing this rebate impediment, which stifiled competition between brokers.

The Board will amend the Administrative Rules of Montana deleting language stating that holders of real estate licenses may not "solicit business by offering gifts, rebates, or promotional items." The amended rule clarifies that a rebate paid to a buyer or seller in a real estate transaction is not an unauthorized payment of a commission to an unlicensed person. Read More Here

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406.579.9683 taunya.fagan@prumt.com

Big Sky Montana Real Estate Livingston Montana Real Estate

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Michael Shalen

Chicago Office Advisers - Chicago, IL

The state has just given you a gold mine. When I was in NJ we were prohiited from any rebates as the state considered it to be fee splitting and illegal. When I moved to IL I was surprised to find that rebates were allowed but no one was using them. When I am competing against larger companies for business I always offer to rebate a portion of the commission to my client. If I worked for one of my competitors (after 10 years of major companies -never again would I do that) then someone would have been in my pocket for 50% anyway so i use 20% or 25% as my standard rebate - but only if the deal is big enough to justify the hit.

Apr 03, 2008 01:54 AM

Stephen Graham

Inactive - Atlanta, GA

This is good news. Hopefully, these rebates will gain traction so we won'thave to fight these lenders anymore to get them posted on the HUD-1. I wish the DOJ would address this issue with the lending industry.

Apr 04, 2008 10:36 AM

REAL ESTATE REBATES OK: MONTANA BOARD OF REALTY REGULATION PERMITS RE REBATES

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