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 requirement ensures that both parties are fully informed and that there is a clear record of the rebate agreement.

A) if the licensee is the broker.

This option is incorrect because the ability to provide a rebate is not solely dependent on whether the licensee is the broker. Both brokers and salespersons can offer rebates, provided they comply with the appropriate legal and contractual requirements.

B) if noted on the contract of sale.

While it is important for agreements to be documented, simply noting a rebate on the contract of sale does not fulfill the legal requirement. A written confirmation specifically detailing the terms of the rebate must be provided to the buyer at closing.

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

This option is misleading as there is no specific percentage cap stated in the law that limits the rebate to 50% of the total commission. The legality of the rebate is based on proper documentation rather than a percentage limit.

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

This is the correct answer because the law explicitly requires that a written confirmation outlining the terms of the rebate must be provided to ensure transparency and protect the interests of both parties involved in the transaction.

Conclusion

The requirement for a written confirmation at closing is essential for legal compliance and establishes a clear understanding between the buyer and the licensee regarding the rebate. Options A, B, and C fail to meet the legal standards set forth by the Real Estate Licensing Law, making D the only definitive and correct choice.