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, they must ensure that there is a written agreement outlining the terms of the rebate that is presented to the buyer during the closing process.

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 a broker or not. The law focuses on the documentation and agreement provided to the buyer, not the position of the licensee.

B) If notated on the contract of sale.

While notation on the contract of sale may be relevant, it does not fulfill the requirement set by the law. The law specifically mandates that a writing confirming the terms of the rebate must be provided at closing, which is more definitive than simply notating it on the contract.

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

This option is misleading because the law does not specify a maximum percentage for rebates. The critical factor is the proper documentation rather than any percentage limitation. Therefore, this option does not align with the legal requirements.

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

This option is correct as it directly reflects the legal requirement outlined in the Real Estate Licensing Law. It emphasizes the necessity of providing a written confirmation of the rebate terms to ensure compliance.

Conclusion

The correct answer is option D, as it encapsulates the legal requirement for providing a commission rebate to a buyer. Other options fail to meet the criteria established by the Real Estate Licensing Law, either by misunderstanding the role of documentation or by introducing irrelevant conditions. Proper documentation at closing is essential for the legality of the rebate.