Comments on: Rebates to Buyers or Sellers http://abr.podbean.com/2007/09/21/rebates-to-buyers-or-sellers/ Educating REALTORS® in the Metro-Atlanta Area Tue, 06 Jan 2009 19:42:45 +0000 http://podbean.com/?v=3.2 by: Barbara Ann Scott http://abr.podbean.com/2007/09/21/rebates-to-buyers-or-sellers/#comment-122263 Mon, 28 Jul 2008 19:54:48 +0000 http://abr.podbean.com/2007/09/21/rebates-to-buyers-or-sellers/#comment-122263 Hello! I have some questions about the "cash back" incentives; also, what can you legally say if you want to help the buyer pay down their mortgage, etc. It would be on the same lines as CENTEX that works with ERA, C21, Navy Federal Credit Union, etc. How and where could you stipulate that and be within the realms of the License Law & Rules and Regulations. Next question...how to legally help a seller sell their home; but not represent them. Any place I can find more information on this? I would charge a flat fee and let the Seller take their own pictures and give me a write up to put on the GAMLS; I would provide them with a lockbox, sign (what could be put on the sign?), 2 local websites that are high ranking on Yahoo! & Google, and access to print their own fliers. Any comments, suggestions, experiences, training, etc; would be greatly appreciated. Please let me know ASAP; I appreciate your time and efforts in this matter. Thanks for your feedback. Hello!

I have some questions about the “cash back” incentives; also, what can you legally say if you want to help the buyer pay down their mortgage, etc. It would be on the same lines as CENTEX that works with ERA, C21, Navy Federal Credit Union, etc. How and where could you stipulate that and be within the realms of the License Law & Rules and Regulations.

Next question…how to legally help a seller sell their home; but not represent them. Any place I can find more information on this? I would charge a flat fee and let the Seller take their own pictures and give me a write up to put on the GAMLS; I would provide them with a lockbox, sign (what could be put on the sign?), 2 local websites that are high ranking on Yahoo! & Google, and access to print their own fliers.

Any comments, suggestions, experiences, training, etc; would be greatly appreciated. Please let me know ASAP; I appreciate your time and efforts in this matter.

Thanks for your feedback.

]]> by: realtypro1998@hotmail.com http://abr.podbean.com/2007/09/21/rebates-to-buyers-or-sellers/#comment-67851 Thu, 27 Dec 2007 20:31:49 +0000 http://abr.podbean.com/2007/09/21/rebates-to-buyers-or-sellers/#comment-67851 Fannie Mae guidelines state that there is to be no cash back to the buyer. Yet, the DOJ says “rebates are typically cash payments from the broker to his/her client after closing”. What’s going on here? Fannie Mae guidelines state that there is to be no cash back to the buyer. Yet, the DOJ says “rebates are typically cash payments from the broker to his/her client after closing”.

What’s going on here?

]]> by: realtypro1998@hotmail.com http://abr.podbean.com/2007/09/21/rebates-to-buyers-or-sellers/#comment-66306 Tue, 18 Dec 2007 23:52:18 +0000 http://abr.podbean.com/2007/09/21/rebates-to-buyers-or-sellers/#comment-66306 the DOJ say rebates are typically cash payments after closing. Ponder this: if lender approval is required, then there is absolutely no way that cash payments after closing would be “typical”. Lenders object to this tooth & nail. Maybe rebates are looked upon by the DOJ in a different manner???? the DOJ say rebates are typically cash payments after closing.

Ponder this: if lender approval is required, then there is absolutely no way that cash payments after closing would be “typical”. Lenders object to this tooth & nail.

Maybe rebates are looked upon by the DOJ in a different manner????

]]> by: realtypro1998@hotmail.com http://abr.podbean.com/2007/09/21/rebates-to-buyers-or-sellers/#comment-60077 Tue, 13 Nov 2007 21:09:12 +0000 http://abr.podbean.com/2007/09/21/rebates-to-buyers-or-sellers/#comment-60077 What is the law? There are 10 opinions and no straight answers. Aren’t seller concessions considered “sourced funds” for the closing? Does a post-settlement rebate fall in the same category? From the Maryland RE Commission: http://www.gcaar.com/legalcorner/docs/rebates_closing_costs.pdf That is a pretty clear and concise interpretation for their State. Lastly, in all of the DOJ's writings on this issue, they never mention the lender. Why? There needs to be clear protocol for buyers, agents and lenders alike. Thanks For Your Feedback! What is the law? There are 10 opinions and no straight answers. Aren’t seller concessions considered “sourced funds” for the closing? Does a post-settlement rebate fall in the same category?

From the Maryland RE Commission: http://www.gcaar.com/legalcorner/docs/rebates_closing_costs.pdf

That is a pretty clear and concise interpretation for their State.

Lastly, in all of the DOJ’s writings on this issue, they never mention the lender. Why?

There needs to be clear protocol for buyers, agents and lenders alike.

Thanks For Your Feedback!

]]> by: Greg Dunn http://abr.podbean.com/2007/09/21/rebates-to-buyers-or-sellers/#comment-60032 Tue, 13 Nov 2007 14:39:15 +0000 http://abr.podbean.com/2007/09/21/rebates-to-buyers-or-sellers/#comment-60032 Remember all loans have, by law, a maximum that the seller can contribute. This gift of commission can be an attempt to avoid this law. The seller gives money to the agent (commission) who then gives money to the buyer. This makes the lender concerned about the agents gift to the buyer. If there is no attempt to circumvent the law it is not a problem. Remember all loans have, by law, a maximum that the seller can contribute. This gift of commission can be an attempt to avoid this law. The seller gives money to the agent (commission) who then gives money to the buyer. This makes the lender concerned about the agents gift to the buyer. If there is no attempt to circumvent the law it is not a problem.

]]> by: realtypro1998@hotmail.com http://abr.podbean.com/2007/09/21/rebates-to-buyers-or-sellers/#comment-59407 Fri, 09 Nov 2007 23:51:23 +0000 http://abr.podbean.com/2007/09/21/rebates-to-buyers-or-sellers/#comment-59407 Do refunds and incentives pose any risk to consumers? Some have argued that refunds and incentives can tempt consumers into closing on real estate transactions against their best interests. The Antitrust Division has found no evidence that refunds and incentives harm consumers. On the contrary, they can dramatically lower the price that consumers pay for brokerage services. http://www.usdoj.gov/atr/public/real_estate/rebates.htm Since DOJ says that rebates aren’t inducements that would harm the lender's position (inducing a buyer), can a lender legally object to a broker rebate to the buyer? To do so might be construed as “tortuous interference”. Just my thoughts... Do refunds and incentives pose any risk to consumers?

Some have argued that refunds and incentives can tempt consumers into closing on real estate transactions against their best interests. The Antitrust Division has found no evidence that refunds and incentives harm consumers. On the contrary, they can dramatically lower the price that consumers pay for brokerage services.

http://www.usdoj.gov/atr/public/real_estate/rebates.htm

Since DOJ says that rebates aren’t inducements that would harm the lender’s position (inducing a buyer), can a lender legally object to a broker rebate to the buyer? To do so might be construed as “tortuous interference”. Just my thoughts…

]]> by: realtypro1998@hotmail.com http://abr.podbean.com/2007/09/21/rebates-to-buyers-or-sellers/#comment-59298 Fri, 09 Nov 2007 14:14:34 +0000 http://abr.podbean.com/2007/09/21/rebates-to-buyers-or-sellers/#comment-59298 "Rebates are typically cash payments from the real estate broker to his or her client after closing." http://www.usdoj.gov/atr/public/real_estate/rebates.htm It's very confusioning. Lenders don't want that. Who's right? USDOJ? or Lenders? “Rebates are typically cash payments from the real estate broker to his or her client after closing.”

http://www.usdoj.gov/atr/public/real_estate/rebates.htm

It’s very confusioning. Lenders don’t want that. Who’s right? USDOJ? or Lenders?

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