Fred Griffin, Licensed Florida Real Estate Broker (Fred Griffin Real Estate)

Spam prevention
Ambassador
2,435,329
Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Yes, it is allowed in NC & SC. All parties need to be notified. In fact, I had one this week that we didn't know about until Closing but, thankfully, it was a cash deal and all parties signed the HUD-1 (including the rebated amount) in agreement.

Apr 14, 2018 05:19 PM
Rainmaker
547,945
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

The only person that can be paid a commission in Arizona is a licensed RE Broker. So commission rebates would have to be called something else on the HUD.
Typically they are called a credit to the buyer from the seller and the RE commission is simply reduced commensurate with that credit and the figure changed on the HUD.
If the buyer is getting a credit, why not just amend the contract to reduce the purchase price.
Or to reduce some figure that the buyer would have to bring to close.
There are several ways to do this, but it's dicey when it comes to paying RE Commission to an unlicensed person.
Plus the lender may not allow it under some circumstances.

Apr 14, 2018 05:54 PM
Rainmaker
2,561,781
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

It is done in the Land of Oz, California.  I see it done in various ways. More in the form of a credit to buyer or seller at closing ... and yes, the lender must always be informed.  

Apr 14, 2018 05:42 PM
Rainmaker
2,304,926
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Yes it's allowed, but I almost never see it happen. I don't give rebates, but if it's a repeat or double-sided client (both selling and buying) I will adjust my commission accordingly.

Apr 15, 2018 05:01 AM
Rainmaker
2,827,931
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Los Angeles Pasadena Area Real Estate 818.516.4393

Is this a semantics lesson? Is commission used here instead of another word/term?

Apr 14, 2018 06:44 PM
Rainmaker
3,637,429
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

When we had our company in CA, we could not do it.  I am not sure what is happening now.  We can only give a referral people to someone that has a real estate license. A

Apr 14, 2018 06:14 PM
Rainmaker
447,558
Dan Tabit
Northstone Real Estate Inc. - Sammamish, WA

Washington State does, we are the home of Redfin (Unfortunately). Everything must be disclosed on the settlement statement. 

Apr 14, 2018 05:56 PM
Rainmaker
4,167,168
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"Franklin MA Homes"

I'm not sure....I know I've not heard of anyone ever doing that....reducing it, yes....but not gifting it...

Apr 14, 2018 05:10 PM
Rainmaker
581,199
Richard Bazinet /MBA, CRS, ABR
AZuRE Team - Realty ONE Group - Scottsdale, AZ
Phoenix Scottsdale. Sellers, Buyers & Relocations

Got to thread carefully Fred in regards to federally funded loans as part of the settlement of a real estate transaction. For example anything that may look like or smell like mortgage fraud, or the participation of an agent in providing a financial incentive to close. I'm sure it's done in AZ in a underhanded manner, but certainly not part of my practice.

The point is that once your transaction is closed, and your commission is paid out, heck, you can do whatever you want with your money - such as give it away.

In AZ, we have rules. One of those rules, is that you cannot incentive a party in selling or buying a property or to influence a party to act based on a financial incentive from a licensed agent.

Apr 14, 2018 05:09 PM
Rainmaker
1,157,384
Bob "RealMan" Timm
Alliance Real Estate - Minot - Minot, ND
Bob Timm, Broker Associate, Alliance Real Estate

I believe ND is the same as Florida Fred Griffin 

Apr 14, 2018 05:07 PM
Rainer
132,006
J.R. Schloemer, CRS
Kentucky Select Properties - Louisville, KY

Yes we have a company here that that is there business model. They pay the buyers to induce them to use them for their real estate transactions.

Apr 14, 2018 06:52 PM
Rainmaker
2,247,032
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

I believe CA will allow it...I would like confirmation however

Apr 14, 2018 05:47 PM
Rainmaker
1,349,738
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Area Real Estate

Yes IL allows it, I do not.

Apr 15, 2018 05:15 AM
Rainmaker
769,835
Thomas J. Nelson, Realtor, ePRO, CRS, RCS-D
Big Block Realty 858.232.8722 - La Jolla, CA
Co-Host of Mail-Right's: Real Estate Agent Podcast

Yes, and I do so for my Military clients and repeat clients that have sent me referrals since they last bought.

 

Apr 15, 2018 04:46 AM
Rainmaker
622,208
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

Yes, Idaho allows a rebate to any party to the contract - buyer, seller, etc. -Kasey

Apr 14, 2018 09:22 PM
Rainmaker
388,679
Peter Testa
Nationwide Homes - Danbury, CT
PETER TESTA

It's done in Connecticut. 

Apr 14, 2018 09:09 PM
Ambassador
3,303,099
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams fox cities - Stevens Point, WI
Forestland Experts! 715-204-9671

I am not desperate enough to consider it, and would never hire an agent who offered to do something like this.

Apr 14, 2018 07:36 PM
Ambassador
3,586,359
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

TN does not but there are ways around it like a reduction in commission and credited monies to come in the form of a gift card to a local home improvement store.

Apr 14, 2018 04:59 PM
Rainmaker
512,034
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

California allows a credit to a client whether buyer or seller. Yes, must be within the parameters of what the lender, if there is one, will allow as far as buyer credit is concerned. It can be done through a commission reduction for sellers or a closing cost credit for buyers.

Let’s remember…we are talking a about a credit to a client, not a referral payment to an unlicensed person. The latter is illegal.

Apr 16, 2018 10:31 AM
Ambassador
1,504,664
Alan May
Coldwell Banker Residential - Evanston, IL
Helping you find your way home.

Totally legal in Illinois, as well as 39 other states in the union to pay (or rebate) a fee to the buyer or seller in the transaction... even if they are not a licensed Realtor.

It does not have to appear on the closing statement (we no longer have a HUD-1), and can be paid outside of closing.  It's nobody's business but our own.

Apr 15, 2018 06:18 AM
Rainmaker
641,655
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Yet bet 'inducements' are alive and well in Florida.

And 'RP Lending' recently started a real estate marketing company so the lender provides LARGE inducements in addition to agent rebate.

Yep, inducements are alive and well in Florida.

Apr 15, 2018 04:45 AM
Ambassador
2,643,873
Paul S. Henderson, REALTOR®,CRS,
RE/MAX Professionals. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

Yes but not to a third party...

Apr 14, 2018 10:50 PM
Ambassador
3,856,536
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Fred Griffin - gift money goes to the broker. The consumers are NOT supposed to get paid from any of the brokers - just my two cents.

Apr 14, 2018 10:33 PM
Rainmaker
1,308,117
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Los Angeles CA

Yes, we can do it via escrow, so a principal can use it for closing costs or however they want. Lenders also do rebates this way.

Apr 14, 2018 08:26 PM
Rainmaker
4,501,125
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

I am uncertain.

Apr 14, 2018 05:03 PM
Rainmaker
269,411
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

This is illegal in Oregon.  All commission must be paid to a licensed real estate brokerage.

Apr 17, 2018 08:15 PM
Rainmaker
2,397,796
Richard Weeks
Dallas, TX
REALTOR®, Broker

Yes, any party to the transaction as long as there is full disclosure.

Apr 17, 2018 05:21 AM
Rainmaker
464,564
Tony Lewis
RE/MAX of Valencia (Hall of Fame) 30 year Valencia Resident - Valencia, CA
RE/MAX Valencia, Stevenson Ranch, Santa Clarita

We in California are allowed to give our clients up to 100% of our commission at the closing if it is disclosed.  The after closing gift is limited to $500

Apr 16, 2018 09:20 AM
Ambassador
2,693,374
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Rebates are only banned in 10 states.   However, I never "rebate" after closing.  I always only ever offer a credit when I am in fact negotiating from my firm's standard fees.  

Apr 15, 2018 09:58 PM
Rainmaker
1,384,366
Yolanda Cordova-Gilbert
Sitterle Homes - Richmond, TX
Sitterle Homes

Yes this is common pratice and yes it must be diclosed to the lender.

Apr 15, 2018 01:08 PM
Rainmaker
917,895
Corinne Guest, Managing Broker
Barrington Realty Company - Barrington, IL
Barrington, a Luxury, Country Suburban Lifestyle.

Yes IL does.

Apr 15, 2018 12:07 PM
Rainmaker
1,045,114
Ryan Huggins - Thousand Oaks, CA
www.HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

California allows it, so long as it's disclosed to the banks.  It's done in the form of a credit towards closing costs, but can turn into a check if it exceeds closing costs (at least according to the Broker exam study book I read).

Apr 15, 2018 09:16 AM
Rainmaker
520,931
Gloria Valvasori, Accredited Senior Agent
BETTER HOMES AND GARDENS REAL ESTATE SIGNATURE SERVICE - Mississauga, ON
REAL Experience | REAL Commitment | REAL Results!

We cannot do it here, not allowed... nor can we personally provide money back to the Seller or Buyer.  All commission received on the sale or purchase goes to the Brokerage...

Apr 15, 2018 07:43 AM
Rainmaker
657,114
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

In CT, only to your PRINCIPALS, that is if you have a signed agency relationship with them.

Apr 15, 2018 07:25 AM
Rainmaker
2,562,259
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker

Disclosure is the key! Make sure it is in the contract so all are on a level playing field!

Apr 15, 2018 06:15 AM
Rainmaker
2,587,967
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

In NH the law is up to $50 to a non licensed person. 

Apr 15, 2018 05:56 AM
Rainmaker
2,823,445
Tony and Suzanne Marriott, Associate Brokers
BVO Luxury Group @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

AZ allows it providing it's fully disclosed and appears as a credit to someone on the Closting Disclosure...

Apr 15, 2018 05:34 AM
Rainmaker
4,147,942
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I'm in Florida also, so, yes.

Apr 15, 2018 05:30 AM
Rainmaker
3,912,539
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Disclose.

Apr 15, 2018 03:59 AM
Rainmaker
205,261
Dennis Swartz
Full Circle Property Management - Columbus, OH
ABR, CRB, GRI, MBA...experience counts!

I give them all the time! Well, not all the time but to past clients as a loyalty bonus.  As long as its to a principal and documented.

Apr 15, 2018 02:55 AM
Rainmaker
3,437,806
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

CO does also, just have to disclose to the lender.

Apr 18, 2018 07:41 AM
Rainer
9,693
Jeff Perlis Prime Properties
Prime Properties - Lake Arrowhead, CA
Experience Your Own Transformation!

Yes.

Apr 15, 2018 09:51 PM
Rainmaker
831,134
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

RF advertises that they rebate ~0.5% back to buyer in CA.

 

Apr 15, 2018 09:45 PM
Ambassador
1,322,798
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Not here.

Apr 15, 2018 10:13 AM
Rainmaker
262,101
David Martin
Fairfax Realty - Fairfax, VA
Making Realty Dreams a Reality

Virginia also permits this I think there are about 8-10 states the prohibit this though Fred Griffin 

Apr 19, 2018 05:59 PM