Buyer Closing Credit Program

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A buyer agent rebate (also called a commission rebate, buyer credit, or homebuyer refund) is money the buyer's agent gives back to the buyer out of the commission the agent receives on the deal. It can take the form of a credit toward closing costs, a reduction in the price you effectively pay, or, less commonly, a check after closing.

It is not a discount from the seller and not a lender program. It comes specifically from the buyer-side agent's compensation, which is why the size of the rebate is capped by whatever that agent earns on your transaction.

Yes. California is one of the states that permits buyer commission rebates. At the federal level, the U.S. Department of Justice's Antitrust Division has long treated commission rebates as pro-competitive and consumer-friendly, and has opposed state-level bans. A minority of states restrict or prohibit them; California is not among them. Rules and restrictions vary by state, so a rebate that is routine in California may be unavailable elsewhere.

The California Department of Real Estate (DRE) does not forbid rebates. What it enforces is disclosure and honest dealing.

Under California's Real Estate Law, a licensee cannot take a "secret" or undisclosed profit. The DRE can discipline an agent or broker who fails to reveal the full amount and nature of their compensation to the party they contract with. In practice, that means a compliant rebate should generally:

• Be agreed to in writing and disclosed to all parties, including the seller who is funding the commission;
• Be paid through escrow and shown on the settlement/closing statement rather than handled off the books; and
• Not be a disguised referral fee to an unlicensed person: paying someone who is not licensed for sending business is a separate violation.
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These are general principles drawn from DRE guidance and California statute, not a substitute for your broker's compliance review. The exact disclosure forms and escrow handling can vary by brokerage and by lender.

If a brokerage advertises rebates, DRE advertising rules apply. Advertising cannot be false or misleading, and licensees must identify themselves as agents and disclose their DRE license identification number on solicitation materials and on purchase agreements (California Business and Professions Code section 10140.6, and the DRE's advertising guidelines). A rebate offer that is real, clearly stated, and delivered as promised is fine; a bait-and-switch "guaranteed savings" claim is not.

Buyer closing cost credits and commission rebates are legal in California.

Under California Business and Professions Code § 10137, a real estate broker can rebate a portion of the compensation received in a transaction to the buyer without violating California law.

Dalton Premiere Realty's Buyer Closing Cost Credit Program provides buyers with a negotiated portion of our brokerage compensation as a credit at closing.

When financing is involved, the credit is disclosed and structured in accordance with lender and transaction requirements.

Your credit amount is agreed upon in advance, so you know what to expect before closing.