Question 65

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.

This means that for a licensee to legally offer a commission rebate to a buyer, there must be a written confirmation of the rebate terms presented 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 contingent upon whether the licensee is the broker. The law permits rebates under specific conditions, which do not solely depend on the licensee's status.

B) If notated on the contract of sale.

While it may be advantageous to note the rebate in the contract of sale, this option does not fulfill the requirement set by the Real Estate Licensing Law. The law specifically states that a writing confirming the terms of the rebate must be provided at closing, not merely noted in the contract.

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

This statement is misleading as it does not accurately reflect the legal requirements for offering a rebate. The law does not specify a cap of 50% on the rebate; rather, it emphasizes the necessity of providing written confirmation of the rebate terms at closing.

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 requirements established by the Real Estate Licensing Law. The law mandates that for a rebate to be valid, there must be a written confirmation given to the buyer at the time of closing.

Conclusion

The correct answer is D because it directly adheres to the stipulations of the Real Estate Licensing Law regarding commission rebates. Options A, B, and C fail to meet the necessary legal criteria, as they either misinterpret the law or omit the crucial requirement of written confirmation at closing.