$$ cash back

Let's all be thankful that laws are written to specify only what is ILLEGAL. If it is legal, there will be no "language of the law" to review no?

http://www.justice.gov/atr/public/real_estate/rebates.htm

This explains all the nuts and bolts of commission rebates and the DOJ's position that they are very beneficial to the consumer. This is not about emulating the Foxtons failed model, this is about providing full service along with a known added value to your purchase. Hope this helps.

Keith
http://theburkhardtgroup.com/agents_details.php?agent_ID=7619

If you're talking about New Jersey, be aware that the law was just changed this spring. But I think what you're looking for is the New York State Licensing Law, which is here:

http://www.dos.state.ny.us/LCNS/lawbooks/re-law.html

ali r.
DG Neary Realty

The question is "Are commission rebates legal in New York?" According to the Department of Justice they are, per New York State law. The DOS deals with real estate licensing law. Sales agents/brokers may not share commissions with unlicensed parties, however a rebate is treated as an adjustment in price to the consumer. This is why firms like REDFIN, Ziprealty and CondoDomain have opened up shop in New York.

Since this is also considered an adjustment in price by the IRS, no 1099 is required to be filed.

As far as I can tell, this is a win win situation for buyers of real estate in New York.

Thank you all. So what about rent.com's model where they offer $100 "cash back" to the consumer. This would not be an adjustment in price or a credit at closing, but rather "cash" upon signing. It seems this would be "illegal" as the consumer is not a licensed real estate agent/broker. Would that be correct?