Zillow Advice: Home Buying - Buyer Agent Commission Rebate http://www.zillow.com/advice-thread/Buyer-Agent-Commission-Rebate/352845/ Zillow Advice | Zillow Real Estate Tommy Lorden,&nbsp;Great ... http://www.zillow.com/advice-thread/Buyer-Agent-Commission-Rebate/352845/ Tommy Lorden,&nbsp;<br/><br/>Great information regarding the RESPA FAQ document. What I think isn't completely clear is whether the word "must" is referring to the fact that a rebate "must" be on the HUD or whether it means that it "must" be a credit on the HUD, as oppoed to something else. &nbsp;<br/><br/><strong>From Tommy</strong>:<br/><div>Q: May a real estate agent rebate a portion of the agent&lsquo;s commission to the borrower? If so, how should the rebate be listed on the HUD-1?<br/><div>A: Yes, real estate agents may rebate a portion of the agent&lsquo;s commission to the borrower in a real estate transaction. The rebate <strong><em>must be listed as a credit</em></strong> on page 1 of the HUD-1 in Lines 204-209 and the name of the party giving the credit must be identified. Real estate agent or broker commission rebates to borrowers do not violate Section 8 of RESPA as long as no part of the commission rebate is tied to a referral of business.</div></div> Thu, 28 Aug 2014 19:35:00 GMT http://www.zillow.com/advice-thread/Buyer-Agent-Commission-Rebate/352845/ 2014-08-28T19:35:00Z Sorry for the delay in my ... http://www.zillow.com/advice-thread/Buyer-Agent-Commission-Rebate/352845/ Sorry for the delay in my follow up to this post. &nbsp;I see the question directed at me is now moot and/or others jumped in to answer. &nbsp;Having said that, it also looks like there is room for clarity on this matter, and because commission rebates are all I do, I thought I'd weigh in the following resource taking from page 43 of the official RESPA FAQ Document (as updated January 28, 2010):<br/><br/><div>Q: May a real estate agent rebate a portion of the agent&lsquo;s commission to the borrower? If so, how should the rebate be listed on the HUD-1?<br/><div>A: Yes, real estate agents may rebate a portion of the agent&lsquo;s commission to the borrower in a real estate transaction. The rebate must be listed as a credit on page 1 of the HUD-1 in Lines 204-209 and the name of the party giving the credit must be identified. Real estate agent or broker commission rebates to borrowers do not violate Section 8 of RESPA as long as no part of the commission rebate is tied to a referral of business.</div></div> Thu, 28 Aug 2014 14:26:00 GMT http://www.zillow.com/advice-thread/Buyer-Agent-Commission-Rebate/352845/ 2014-08-28T14:26:00Z [Spam deleted by Zillow ... http://www.zillow.com/advice-thread/Buyer-Agent-Commission-Rebate/352845/ [Spam deleted by Zillow moderator.] Mon, 18 Aug 2014 12:33:00 GMT http://www.zillow.com/advice-thread/Buyer-Agent-Commission-Rebate/352845/ 2014-08-18T12:33:00Z I am now in property management, ... http://www.zillow.com/advice-thread/Buyer-Agent-Commission-Rebate/352845/ I am now in property management, but used to offer realtor rebates to my buyers.&nbsp; I researched the matter myself, then went to an attorney for review.&nbsp; We&nbsp;concluded any rebate had to be from&nbsp;me, the Realtor and after closing because <br/><br/>[1] it's a rebate of the realtor's commission and had to pass through me first.&nbsp; I had to actually receive [and lawyer suggested cash or deposit] my commission check before issuing anything to&nbsp;my buyer.&nbsp; &nbsp;With funding delays that could be the next day or more.&nbsp; Then the rebate had to come from my business checking account.<br/>&nbsp;<br/>[2] if not, if my client got his&nbsp;"portion" &nbsp;[not a credit towards closing costs etc. ] at closing, then the funds came from the title company or with a stretch of the imagination, from the seller or listing agent, because they did not come from "me".&nbsp; That would be a violation of TX RE Practices Act because a non licensed person received funds related to the sale of a property.<br/><br/>My attorney and I worked on this, then I postulated the scenario to TREC and got a short but clear reply that my logic&nbsp;was sound and practice acceptable.&nbsp;&nbsp;<br/><br/>Caveat - that was sometime back about 2000 - 2001? when I changed internet providers I lost that email and wish I had printed a hard copy.&nbsp; Another lesson to be learned? Mon, 11 Aug 2014 19:37:00 GMT http://www.zillow.com/advice-thread/Buyer-Agent-Commission-Rebate/352845/ 2014-08-11T19:37:00Z We pay 1% of our commission ... http://www.zillow.com/advice-thread/Buyer-Agent-Commission-Rebate/352845/ We pay 1% of our commission as&nbsp;credit on HUD-1 at closing.<br/>Check http://UtmostRealty.com Sat, 09 Aug 2014 01:16:00 GMT http://www.zillow.com/advice-thread/Buyer-Agent-Commission-Rebate/352845/ 2014-08-09T01:16:00Z I would structure it as an ... http://www.zillow.com/advice-thread/Buyer-Agent-Commission-Rebate/352845/ I would structure it as an amend/extend that reduces the sales price and the buyer's agent's co-op commission simultaneously. &nbsp; That way its all above board, and fully disclosed on the HUD, &nbsp;It also doesn't affect the terms of the loan any either. &nbsp;&nbsp;<br/><br/>&nbsp;It won't be cash in hand... but in the long term its actually better, because every dollar financed on a 30yr mortgage, costs you three dollars to pay back over time.&nbsp;<br/><br/>What I personally do instead.... is offer a discounted listing commission to any seller who is also using me to buy a home. &nbsp;Its much simpler, and cleaner than a partial rebate of my buyer's agent commission.&nbsp; Sun, 29 Jun 2014 17:26:00 GMT http://www.zillow.com/advice-thread/Buyer-Agent-Commission-Rebate/352845/ 2014-06-29T17:26:00Z The U.S. Justice Department ... http://www.zillow.com/advice-thread/Buyer-Agent-Commission-Rebate/352845/ The U.S. Justice Department Web site:&nbsp;http://www.justice.gov/atr/public/real_estate/rebates.html<br/><br/>"How do rebates work?<br/>Some real estate brokers offer consumers cash refunds or non-cash incentives to encourage them to use that broker's services. Rebates are typically cash payments from the real estate broker to his or her client after closing. Incentives may include gift certificates, closing-cost payments, or free ancillary services such as home inspections or moving services."<br/><br/>The above reads, "after closing." There isn't any mention of paying after closing being an issue. Does someone have a specific opinion from a state or federal authority requiring rebates be on the HUD-Settlement Statement? Sun, 29 Jun 2014 15:55:00 GMT http://www.zillow.com/advice-thread/Buyer-Agent-Commission-Rebate/352845/ 2014-06-29T15:55:00Z At UpNest, The typical method ... http://www.zillow.com/advice-thread/Buyer-Agent-Commission-Rebate/352845/ At UpNest, The typical method we facilitate is as a credit on your HUD-1 closing form. &nbsp;We apply a special &nbsp;UpNest-provided rebate the same way. &nbsp;In rare circumstances where crediting during escrow is not possible, we'd &nbsp;mail a rebate check within five (5) business days. Thu, 17 Apr 2014 00:01:00 GMT http://www.zillow.com/advice-thread/Buyer-Agent-Commission-Rebate/352845/ 2014-04-17T00:01:00Z All of the answers here seem ... http://www.zillow.com/advice-thread/Buyer-Agent-Commission-Rebate/352845/ All of the answers here seem to be getting so caught up with the technical aspect of the question, that they are failing to factor the current market conditions into their answers. &nbsp;&nbsp;<br/><br/>Because Colorado is currently experiencing a strong "Seller's" market... most buyers are having to pay full price for the homes, and the sellers are refusing to offer any concessions for closing costs. &nbsp;<br/><br/>So... given the current market conditions, the way to receive a commission rebate that makes the most sense would most likely be to allow the agent to give you concessions towards your closing costs. &nbsp; This will keep your offer strong, and improve your chances of offer acceptance (vs. asking the seller's for closing costs).<br/><br/>All of that being said.... in this market, buyers are a lot of work, time, and gasoline, due to the limited inventory. &nbsp;Any buyer's agent that would willing to rebate part of their commission in spite of all of that, would have to be pretty desperate for a client. &nbsp;Any agent that desperate, quite frankly probably isn't someone I'd want representing me on the biggest transaction of my life.&nbsp; Mon, 07 Apr 2014 03:36:00 GMT http://www.zillow.com/advice-thread/Buyer-Agent-Commission-Rebate/352845/ 2014-04-07T03:36:00Z Realtor rebates must be shown ... http://www.zillow.com/advice-thread/Buyer-Agent-Commission-Rebate/352845/ Realtor rebates must be shown on the HUD settlement statement. If any agent rebates money outside of settlement and it is not shown on the HUD settlement statement this constitues loan fraud. Sun, 06 Apr 2014 15:52:00 GMT http://www.zillow.com/advice-thread/Buyer-Agent-Commission-Rebate/352845/ 2014-04-06T15:52:00Z