What is a commission rebate?

What is a commission rebate?

A commission rebate is credit back to a buyer or a seller from the real estate agent commission.  In essence the real estate agent collects the entire commission and then gives a portion of the commission back to the buyer and seller.  This transfer of the commission can happen on or off the closing state.  A real estate commission rebate can only be given to a party of the sale and all parties involved in the sale are to be notified and aware of the rebate.  To learn more about rebates and which of the 40 states this practice is legal in visit the Department of Justice website.