Let's Ask TREC

Let’s Ask TREC

If you have ever had a real estate question and you weren’t sure who to ask, then you may just want to ask TREC. We have just launched a new video series on YouTube called “Let’s Ask TREC” and we encourage all Texas real estate agents and brokers to check it out. You can access our first release here: Let’s Ask TREC: Episode 1

In this video series we will be discussing some of the more common questions that are asked of TREC. They will be centered around contracts, licensing rules, advertising, duties and disclosures, financial matters, property management, and so much more. Each week a new video will be released addressing a new topic.

This week’s topic is client rebates. The question is: “I only represent buyers. Can I advertise that I will rebate a part of my compensation to the buyer?” The short answer is “yes.” But there are some conditions that must be considered. The advertisement must comply with Rule 535.155 (effective May 15, 2018) regarding any restrictions that might apply. And the agent will need to consult with the buyer’s lender regarding any restrictions. There have been cases when an agent promised a rebate to a buyer and really wanted to do so. The transaction moved along smoothly until it was discovered that there was too much money being contributed to the buyer and the rebate took contributions over the limit allowed by the lender. Keep in mind that contributions to the buyer not only include the rebate from the agent but also any seller contributions that have been stated in the contract. In this case the agent was not able to contribute as much of the commission as intended.

TREC advises agents to contact his/her broker or private attorney to find out how to notify and obtain the consent of the buyer’s lender to address any impact the rebate may have on the determination regarding the buyer’s creditworthiness.

For other frequently asked questions check out our list at Pioneer FAQs.