Question 40

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.

For a real estate licensee to legally offer a rebate of the commission to a buyer, it is essential that there is a written confirmation of the rebate terms presented to the buyer at the time of closing.

A) if the licensee is the broker.

This option is incorrect because the ability to provide a rebate is not solely dependent on whether the licensee is the broker. The critical factor is the documentation of the rebate, not the position of the licensee.

B) if notated on the contract of sale.

While noting the rebate on the contract of sale may be helpful, it is not a sufficient condition for providing a rebate. The law specifically states that a writing confirming the terms of the rebate must be provided at closing, making this option incorrect.

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

This option introduces an arbitrary limit that is not specified in the Real Estate Licensing Law. The focus is on the documentation of the rebate rather than a percentage limitation, rendering this option incorrect.

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

This option is correct as it directly aligns with the requirements outlined in the Real Estate Licensing Law. A written confirmation of the rebate terms is necessary to ensure legal compliance when offering a commission rebate to a buyer.

Conclusion

The correct answer is D, as it emphasizes the legal requirement of providing written confirmation of the rebate terms at closing. Options A, B, and C fail to meet the necessary legal conditions for offering a rebate, thereby confirming that D is the only option that accurately reflects the law's stipulations.