Question 68

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 allowed to offer a rebate of the commission to a buyer, but it is essential that a written confirmation detailing the terms of the rebate is provided at the time of closing.

A) if the licensee is the broker

This option is incorrect because the ability to provide a commission rebate is not solely dependent on whether the licensee is the broker. While brokers can offer rebates, the law requires specific documentation to be in place for any licensee to provide a rebate.

B) if notated on the contract of sale

This option is also incorrect as simply noting the rebate on the contract of sale does not fulfill the legal requirement. The law stipulates that a written confirmation of the rebate's terms must be provided at closing, rather than just being mentioned in the contract.

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

This option is misleading because while there may be limits to rebates in some jurisdictions, the critical requirement under the Real Estate Licensing Law is the existence of written confirmation at closing. Thus, even if the rebate exceeds 50%, it does not invalidate the requirement for documentation.

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

This is the correct option as it accurately reflects the stipulation in the Real Estate Licensing Law. Providing a written confirmation of the rebate terms at closing ensures transparency and legal compliance in the transaction.

Conclusion

The correct answer is D because it aligns with the legal requirements for providing a commission rebate, emphasizing the necessity of written confirmation at closing. Options A, B, and C fail to meet the critical legal standards set forth in the law, thus making D the only viable choice.