Question 82

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 stipulation ensures that both parties have a clear understanding of the rebate terms and establishes a formal agreement regarding the commission adjustment.

A) if the licensee is the broker.

This statement is incorrect as the ability to provide a rebate is not contingent upon whether the licensee is the broker. The regulation applies to all licensed real estate agents, regardless of their specific role in the transaction.

B) if notated on the contract of sale.

While it is essential to document agreements, merely notating the rebate on the contract of sale does not comply with the legal requirement. The law specifically mandates that a written confirmation of the rebate terms be provided at closing, which is not addressed by this option.

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

This option incorrectly implies a limitation on the percentage of the rebate. The law does not stipulate a maximum percentage for the rebate; instead, it focuses on the requirement of providing written confirmation at closing.

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

This option correctly reflects the law's requirements. A written confirmation of the rebate's terms ensures transparency and protects both the licensee and the buyer, fulfilling the legal obligations outlined in the Real Estate Licensing Law.

Conclusion

The correct answer is option D, as it encapsulates the legal requirement for a real estate licensee to provide a rebate to a buyer. The other options fail to meet the specific criteria set forth in the law, either misrepresenting the conditions under which a rebate may be offered or providing incorrect stipulations regarding documentation and limitations.