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      Commission Rebates

      License law prohibits splitting fees to an unlicensed person (Ohio), BUT rebating commissions to a transaction party is not illegal. (not conduct that requires a real estate license)

      However, if the rebate was offered to induce a client to enter into a purchase contract, license law sometimes requires rebate disclosure:

      Structures for moving repair monies

      • Closing Costs
      • Contractor - paid from closing
      • Contractor - paid prior to closing, with repairs complete
      • Wherever possible, make sure the buyer picks contractor and bid
      • Undisclosed money movement between buyer and seller is mortgage fraud
      • Agent(s) commission credited to buyers and/or sellers

      When in doubt. Disclose!

      OAR Information on License Law, Commissions, Inducements, and more

       

       

      Key Words:  Rebates, Commission Rebates,