HomeBuyer RewardsSM FAQ's
| Q: | Do I have to pay for the service? |
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| A: | No. Our service is provided FREE OF CHARGE to property buyers, and in most cases our participating real estate brokers do not charge a fee to property buyers. However, real estate brokers in our network may pay us a periodic fee or other compensation to participate in our network. |
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| Q: | Where does the money come from to pay for my “reward” – isn’t it coming out of my own pocket? |
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| A: | No. In most cases the fee is paid by the seller in the transaction, at a pre-determined rate negotiated between the seller and the seller’s broker before any potential buyer is identified and without the buyer’s involvement. When you buy a home through one of our rewards programs, the purchase price for the home is the same, but the buyer’s broker’s commission will be lower (in other words, it comes out of the buyer’s broker’s pocket – not yours). To learn more about how rebates work, click here |
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| Q: | A seller’s broker told me that providing a reward or rebate is an “illegal kickback” under state law, which prohibits sharing of commissions with an unlicensed person. Is that true? |
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| A: | In many states, sharing a commission with an unlicensed person is illegal, but cash rebates and similar rewards are permitted. For example, although New York law prohibits sharing of commission with an unlicensed person, cash rebates and other rewards to a buyer are allowed. In fact, such rewards and rebate programs are encouraged by authorities in order to benefit consumers by allowing free market competition. Some seller’s brokers who also represent buyers do not want to reduce their commission and either do not understand or simply misapply the rules. To learn more, click here |
