Rebates

Q 1: Can I rebate part of my commission to the buyer or seller, or is that splitting a fee with an unlicensed person?

A: Although Ohio license law does prohibit splitting commissions or paying fees to an unlicensed person, the Ohio Division of Real Estate does not consider the rebating of a commission to a party of the transaction to constitute such an illegal payment. This is because the buyer or seller was not engaging in conduct that requires a real estate license. Therefore, such a rebate would be permissible.

It should be noted that if this rebate were offered to induce the buyer or seller to enter into a purchase contract, Ohio license law would require that this rebate be disclosed in the purchase contract.