How Commissions Work

3 EASY STEPS TO RECEIVE YOUR CASH BACK

Name
Email
Phone
Best Describes Me
Choose Location
Timeline

Can a license holder rebate a portion of his commission to a seller? What about a buyer?

Answer:

Yes. It is not a violation of TRELA or the Rules for a license holder to rebate a portion of the license holder’s commission to a party to a real estate transaction. If the rebate is to a party the license holder does not represent, the license holder must obtain the consent of the party represented by the license holder before making the payment. [Rule 535.147(d)]

https://www.trec.texas.gov/can-license-holder-rebate-portion-his-commission-seller-what-about-buyer

https://www.justice.gov/atr/rebates-make-buying-home-less-expensive

Texas Real Estate Commission rules allow a license holder to rebate part of her commission to a party in the transaction if certain requirements are met. The license holder must have the written permission of her sponsoring broker and the party she represents. For example, if the buyer’s agent wanted to rebate part of her commission to the seller, she would need the permission of her broker and the buyer.

https://www.texasrealestate.com/members/communications/texas-realtor-magazine/issues/july-2019/what-you-should-know-about-giving-rebates-on-your-commission/#:~:text=Texas%20Real%20Estate%20Commission%20rules%20allow%20a%20license,the%20permission%20of%20her%20broker%20and%20the%20buyer

More About How Commission Back Works

Each Real Estate transaction can have a Seller and Buyer Agent within the home selling/buying transaction. This is the case for buying a new or existing home. The buyer's agent can received 3% commission, the seller's agent can also receive 3% commission. Total of 6% contributed from the seller. What we can do is rebate you part of your commission either if you are buying or selling. Bottom line don't pay 3% selling your home, and if you are buying get either commission back for your closing costs, off the price of the house, or possibly a check back during closing(depending on the lender rules).

More good news: We work 100% for you towards getting you the best deal either selling or buying. We will represent you to our fullest ability for every step of the process!