Absolutely! Rebates are legal in Texas and in many other states across the U.S. Many people inaccurately assume that there is a “catch” or that they will get in trouble, or other things associated with rebates. This is totally NOT TRUE! Per the Department of Justice, rebates are 100% legal in the state of Texas!
If you still aren’t a believer, click on this link straight from the U.S. Department of Justice Website and learn what the government thinks about Realtors sharing their commission with buyers…they think it’s good for the economy and should be allowed in all states! Check out Department of Justice Website.
BELOW IS AN EXCERPT DIRECTLY FROM THE DEPARTMENT OF JUSTICE WEBSITE
Rebates and Inducements
Some real estate brokers have increasingly begun to compete for customers by offering cash rebates or other inducements to home buyers and sellers. Rebates that go directly to buyers or seller’s lower costs on both sides of the transaction. Cash rebates are usually calculated as some fraction of the broker’s commission and can result in thousands of dollars being returned to the consumer.
Commission rebates are applied directly at closing as a credit from your agent. It’s simple, according to the Department of Justice,
“Rebates make buying a home less expensive.” … Read More
Can a license holder rebate a portion of his commission to a seller? What about a buyer?
Answer: Yes. It is not a violation of TRELA or the Rules for a license holder to rebate a portion of the license holder’s commission to a party to a real estate transaction. If the rebate is to a party the license holder does not represent, the license holder must obtain the consent of the party represented by the license holder before making the payment. [Rule 535.147(d)]