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IS CASH BACK FROM YOUR BROKER LEGAL ? YES

By Stephanie Sandoval

Real Estate Broker/Owner with Arizona Cash Back Brokerage , Stephanie Sandoval

January 24, 2011 04:30 PM

So I thought I would start off with blogging about this question i hear from clients and other realtors more than actually clients . Is that legal ? How can you do that ? Well the answer is YEs its legal !! Buyer Broker commissions are negotiable not fixed as rebates or cash back from your real estate broker are legally protected by federal laws ( anti trust) To be exact you would look up USA vs Kentucky Real Estate Comm. The department of justice has indicated that such a broker to a buyer are good to the home buying consumer and key to competition in the market these days and looking forward.

There are few remaining states that have a ban on Rebates so I would check out your state or ask your broker if they are using this practice at all. Arizona does not have a ban on rebates and Cash BAck realty enjoys seeing clients overall happy when they get that rebate from us at the end of the transaction.

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John Michailidis

Real Property Management of Sarasota & Manatee - Sarasota, FL

Real Property Management of Sarasota & M

I think agents should be freed to give all of their money away to everybody. After all, this is not a business, but a mission to spread love and happiness to the world, and what better way to do that than to give away all of your commissions! ;-) --JM

Jan 24, 2011 04:32 PM

Brian West

imortgage - Gilbert, AZ

Arizona Lender

I know an interested party, such as the agent on either side, can contribute toward allowable costs on a deal, but have not heard that an agent can provide "cash". Does this happen on the HUD or after closing? If on the HUD, there's no question it cannot exceed the costs because the buyer will always have to come in with at least, and no less than, their down payment. If after closing.. just seems odd to be honest but I'm sure buyers would love it.. intriguing post

Jan 24, 2011 04:39 PM

Praful Thakkar

LAER Realty Partners - Burlington, MA

Metro Boston Homes For Sale

Stephanie, some of the brokerage still do that - at least in our neighborhood. It does hurt some agents who do not have this practice.

Jan 24, 2011 04:40 PM

Stephanie Sandoval

Arizona Cash Back Brokerage , Stephanie Sandoval - Queen Creek, AZ

REAL ESTATE BROKER Scottsdale & Phoenix & Gilbert

Brian - Yes in the contract it has to be disclosed to all parties by the Dept of Real Estate and it can be used as a credit towards closing cost if the lender allows or they can receive cash back after the sale has closed - Its called a Rebate !

Praful - In Arizona there are 6 companies that really are active about advertising this practice so Im sure some agents loose business here as well !

Jan 24, 2011 04:46 PM

Sergio Rebollo Jr.

Real Estate TeamMates - Miami, FL

Welcome to ActiveRain. This is a great community to network with others as well a great place to learn from other's experiences and knowledge. I've enjoyed it; I hope you enjoy it as well.

Jan 27, 2011 04:48 PM

Thanks Sergio !

Jan 28, 2011 03:48 AM

Olympus Executive Realty Inc.

Olympus Executive Realty INC. - Orlando, FL

Home Of The Top Producers

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Need help drop me an e-mail, I would be more then happy to assist you.

Feb 01, 2011 04:49 PM

IS CASH BACK FROM YOUR BROKER LEGAL ? YES

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Stephanie Sandoval

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