Question 55

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 commission rebate to a buyer, but this must be documented in writing and presented to the buyer at the time of closing to ensure transparency and compliance with the law.

A) if the licensee is the broker.

This option is incorrect because the ability to provide a commission rebate is not contingent on whether the licensee is the broker. Any licensed real estate agent can provide a rebate, provided they adhere to the necessary legal documentation requirements.

B) if notated on the contract of sale.

This choice is also incorrect. While it is important for the terms of any rebate to be documented, the specific requirement is that the writing confirming the rebate be provided to the buyer at closing, rather than merely noted in the contract of sale.

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

This statement is incorrect as well. While there may be limits on commission rebates in some jurisdictions, the emphasis of the Real Estate Licensing Law is on the requirement for written confirmation at closing, rather than a specific percentage limitation.

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

This option is correct. According to the Real Estate Licensing Law, a licensee must provide a written confirmation of the rebate terms to the buyer at closing, which ensures both parties have a clear understanding of the agreement and complies with legal requirements.

Conclusion

The correct answer, D, highlights the necessity of providing written documentation of the rebate terms at closing, which is essential for legal compliance and transparency in real estate transactions. Options A, B, and C fail to address this critical requirement and thus do not accurately reflect the conditions under which a commission rebate can be offered.