YES! REBATES ARE 100% LEGAL IN TEXAS!
Absolutely! Rebates are legal in Texas and in many other states across the U.S. Many people inaccurately assume that there is a “catch” or that they will get in trouble, or other things associated with rebates. This is totally NOT TRUE! Per the Department of Justice, rebates are 100% legal in the state of Texas!
If you still aren’t a believer, please click on this link: (the entire document is worth reading but the rebate information can be found starting on page 20) https://www.ftc.gov/sites/default/files/documents/reports/competition-real-estate-brokerage-industry-report-federal-trade-commission-and-u.s.department-justice/v050015.pdf and read what’s discussed on the U.S. Department of Justice / Federal Trade Commission website, and learn what the government thinks about Realtors sharing their commission with buyers. The government thinks it’s good for the economy and should be allowed in all states!
BELOW IS AN EXCERPT DIRECTLY FROM THE FEDERAL TRADE COMMISSION GOVERNMENT SITE
“Rebates are an important form of price competition under the traditional structure of real estate transactions because the seller and seller’s broker, not the buyer’s broker, determine the amount of the buyer’s broker’s commission via the listing agreement. Without rebates, if the buyer’s broker were simply to reduce his or her commission, the savings would go to the seller’s broker, not to the home buyer. As one panelist explained: the mechanics of the typical real estate transaction make it difficult for a buyer’s broker to reduce the price of his or her services because the “custom of the industry” is for the listing broker to split his or her commission with the buyer’s broker. Rebates, therefore, can be powerful tools for price competition between brokers. And by returning money to home buyers, rebates can also benefit home sellers, because buyers will have more to spend on the home as opposed to commission payments.”
WHAT TRADITIONAL REALTORS DON’T WANT YOU TO KNOW….
REBATES MAKE BUYING A HOME LESS EXPENSIVE
Talking about lowering or sharing commissions in the real estate industry is a rather taboo topic. The industry standard allows both the buyer’s and seller’s real estate agent to accept 3% commission on the sale or purchase of a new home. Although sharing the commission with a buyer or seller is perfectly legal in the state of Texas, most real estate brokers would rather not. Why? It’s obvious, they want to keep the full 3% for themselves and that’s fine, except that in many cases, the more educated homebuyer has already done most of the legwork and has already identified areas, neighborhoods, builders and sometimes have even zeroed in on homes of interest. All of this hard work on the buyer’s part makes my job very easy. Once we find the right home, I negotiate with the builder, review contracts and advise throughout the process. Because my buyers have done so much of the work already, I’m able to in turn, share the majority of my commission with my buyers. I honestly feel that they deserve it!
Read What the Department of Justice and the Federal Trade Commission Have to Say About Homebuyer Rebates and Seller Discounts!
“Commission rebates are applied directly at closing as a credit from your agent. It’s simple” according to the Department of Justice
“Rebates facilitate price competition and deliver value back to the consumer” per the Federal Trade Commission
DON’T LEAVE MONEY ON THE CLOSING TABLE!
REBATES ARE 100% LEGAL IN TEXAS AND EDUCATED BUYERS ARE THE BENEFACTORS!
