Cash Rebate Legal? Is Cash Back Real Estate Legal ?
Department of Justice Says " YES "
Cash Rebates are legal ! Agent's would prefer not to share with you though...
"Allows choice of brokerage... and allows brokers to offer rebates to consumers" - DOJ
"The Department of Justice is committed to preserving competition in the real estate industry through its competition advocacy efforts. Given that California allows real estate brokers to provide rebates to consumers and to customize their real estate service offerings to meet their customers’ needs."
It is our intent to lower your cost of purchasing a home, not my intent to run up the cost to the buyer or seller. We all love to help people and this gives us a competitive edge in a flooded market of real estate agents. Funds come out of our pockets, not the lender's nor the seller's.
When would it become illegal? Whenever you attempt to defraud the lender by using inflated property values, significantly raising the purchase price to cover the cash back, or you have the intent to raise costs for either the buyer or seller - that becomes a great ethical problem. Yes, the FBI investigates this as fraud. We will not knowingly participate in any fraud or scam of this nature. Don't ask. about any rebates larger than what is provided herein.
Real estate agents despise this bonus to buyers, but do you really care about what our competitors want you to do? The cash comes out of commissions already inherent in the deal. The cash comes out of commission that is paid to the broker and inherent in the price of homes for sale.
For more information, look on the Department of Justice Website - at this link or by your own means and decide for yourself.
Is Cash Back Real Estate Legal ?
