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.

A real estate licensee is permitted to offer a commission rebate to a buyer only when there is a written confirmation of the rebate terms provided at the closing. This requirement ensures clarity and legal compliance in the transaction.

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 applies to all licensed agents, regardless of their specific role within a brokerage.

B) if notated on the contract of sale.

While noting the rebate on the contract of sale may be advisable, it is not a legal requirement for the rebate to be valid. The essential condition is providing a written confirmation of the rebate terms at closing, making this option insufficient on its own.

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

This option is misleading as it suggests a limitation on the rebate amount, which is not a stipulation in the Real Estate Licensing Law. The law does not specify a maximum percentage for rebates; rather, it emphasizes the necessity of a written confirmation at closing.

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

This option is correct because the law explicitly states that a written confirmation of the rebate terms must be provided at closing to ensure the transaction is valid and transparent for the buyer.

Conclusion

The correct answer, D, is definitive as it aligns with the Real Estate Licensing Law's requirement for a written confirmation of rebate terms at closing. Other options fail to meet the legal criteria or misinterpret the conditions under which a rebate can be offered, emphasizing the importance of documentation in real estate transactions.