Just read a blog by George Hanson about cash back and gifts.
At a recent course I attended every attorney licensed in Florida and one from Alabama in the room said they wouldn't do it because of the Rico law ( I think it has to do with money laundering not sure) and the fact that the money rebated from the broker would be a 1099 issue too.
Yes I know people do this in Florida but how many are 1099 the amount to the buyer or seller?
Most discusting was the fact that a local broker which will remain nameless had purchased many homes in a couple developments and sold to new buyers at a higher price with rebates.
Well hello guess who paid the price for the rebate? What would the buyer think once they found out it could have been purchased for less direct. Reflects badly on all realtor professionals when a few rotten apples spoil the bunch.
Other cases were sited but from all that was said doesn't sound like a practice any broker should be mixed up with..the tax attorney there had a field day with this too.
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