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Hotline callers often want to know if it's legal to rebate or refund part of their commission to their clients. It is legal, provided the licensee is rebating or refunding commission to her own client and the rebate or refund is listed on the HUD-1.
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The PAR Legal Hotline often receives calls asking whether it is legal for a salesperson to refund or rebate a portion of his earned commission to his client. One issue is whether refunding the commission would be considered an illegal kickback under RESPA but there is a second issue involving the prohibition against paying...
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Wednesday, Feb. 8, 2012
