Barriers to a More Competitive Brokerage Market
Ten states forbid buyers’ brokers from rebating a portion of the sales commission to the consumer. Eight states require consumers to buy more services from sellers’ brokers than they may want, with no option to waive the extra items. HUD recently clarified its rule that rebates are permissible under RESPA as long as they are reported on the HUD-1 form.
- In 2010, New Jersey repealed its ban on commission rebates. New Jersey now permits brokers to offer their customers rebates.
- HUD explains that rebates are permitted by RESPA
- Selling? State laws on brokerage services increase prices
Go to the Department of Justice website and click on this area of Real Estate law.
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