Rebates soon to be allowed in NJ real estate transactions!!

By
Real Estate Agent with Keller Williams Realty

New Jersey real estate professionals will soon join the country in offering rebates or what some may call inducements.  This practice is already accepted in some form throughout the US.  For instance in Pennsylvania I can openly advertise that I will give any seller or buyer an incentive to choosing me as their real estate professional.  In PA I can even offer a prize to individuals who attend my open house, a gift card, flat screen tv, trip and so forth...  It appears as if NJ regulators will not be so liberal in what and how a rebate will be offered.  However I'd like to know if you are a consumer will a rebate of some sort motivate you to choose a professional?  If you are licensed real estate professional do you think this is good for your business?  How much of an impact will this have on NJ real estate transactions?

Below is a press release from NJAR(New Jersey Association of Realtors)

Legislation Permitting Rebates Approved by State Senate
At its January 7, 2010 meeting, the New Jersey Senate approved A-373 which permits rebates to be provided to consumers in real estate transactions. After several years of working with the sponsors of this bill, NJAR® secured amendments stating that only brokers can offer rebates to those purchasing property, rather than allowing all real estate licensees to offer rebates to buyers and sellers, as the original version of the bill would have allowed. In addition, the amendments provide greater consumer protections, including mandating that rebates can only be in the form of a credit or check and requiring that rebates be documented in a contract at the beginning of a brokerage relationship in a written or electronic form or in a buyer agency agreement.
Under current state law, New Jersey real estate licensees are not permitted to offer rebates. Before becoming law, this bill must be signed by Governor Jon Corzine.

Jeremy S. Hill, Realtor Associate
Keller Williams Realty
1814 RT 70 E
Cherry Hill, NJ 08003
Office: 856-321-1212 x227
Direct: 609-876-5817
Search all South Jersey homes and foreclosures www.YourNJHomeSearch.com

Comments (3)

Sonny Landau
St Louis Home Improvement and Painting Companies - Saint Louis, MO

Hi Jeremy,

 

Professional means one gets paid.  If we start "incentives" etc.  there will end up being only the weakest of

individuals willing to work for almost nothing.  There are just too many places where people have to work for next to

nothing.  Keep real estate a profession and not a "Walmart".

 

Get paid for what the efforts you make.  Your customer is not giving away their services.

 

Sonny Landau

Jan 13, 2010 11:55 AM
Glen Fisher
National Property Inspections of Southern New Jersey, LLC - Oaklyn, NJ

I disagree on rebates as often the public perception is a scam.  Real estate professionals should be selected on their merits. 

Jan 17, 2010 08:25 AM
Fred Griffin Tallahassee Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

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