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



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