Legal Question in Real Estate Law in California

Real Estate Commission kickback

Is it legal for a real estate broker to pay portion of her commission back to the client? (i.e., kickback)


Asked on 2/12/03, 5:48 pm

1 Answer from Attorneys
Ken Koenen Koenen & Tokunaga, P.C.

Re: Real Estate Commission kickback

It would depend on the purpose of the rebate.

Commissions are negotialble, so youoften see agents list a home for less than the customary 6%.

If the "rebate" is being used toward their down payment, it could be considered lender fraud if it is not disclosed to the lender.

You get into illegalities when a licensed R.E. agent pays a "Finder's Fee" to an unlicensed individual. That is prohibited.

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Answered on 2/12/03, 7:06 pm


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