Question 41

A real estate licensee can provide a rebate of the commission to a buyer if a writing confirming the terms of the rebate is provided to the buyer at closing.

A real estate licensee is permitted to offer a rebate to a buyer as long as a written confirmation of the rebate's terms is presented at the time of closing. This ensures transparency and compliance with legal requirements.

A) if the licensee is the broker.

This option is incorrect because the ability to provide a rebate is not contingent upon the licensee being a broker. Any licensed real estate agent can provide a rebate, provided they follow the legal stipulations regarding documentation.

B) if notated on the contract of sale.

While documenting terms in the contract of sale is important, this option is not sufficient on its own. The law specifically requires a written confirmation of the rebate's terms to be provided at closing, not just notation in the contract.

C) provided it does not exceed 50% of the total commission.

This statement is misleading as the law does not specify a maximum limit of 50% for rebates. Instead, the critical factor is that the terms of the rebate must be confirmed in writing at closing, making this option incorrect.

D) If a writing confirming the terms of the rebate is provided to the buyer at closing.

This option is correct because it aligns with the Real Estate Licensing Law requirements. The law mandates that a written confirmation of the rebate's terms must be provided to the buyer at the closing to ensure legal compliance.

Conclusion

Option D is definitively correct as it reflects the legal requirement for providing a rebate to a buyer, which is the necessity of a written confirmation at closing. All other options fail to meet the legal conditions outlined in the Real Estate Licensing Law regarding commission rebates.