1: Can I offer buyers a coupon for a free carpet cleaning or some other type of incentive if they purchase a home through my brokerage?
A: Inducements such as these can be offered if the item being given is recited in the purchase contract as part of the consideration. Be careful when advertising such inducements to make sure that any restrictions or qualifications on participation are clearly stated.
2: Can I give an incentive to buyers to purchase property through my company?
A: Yes. However, this would be considered an inducement under Ohio license law. As such, it would have to be recited in the purchase contract as part of the consideration.
3: Are inducements that are given to get people to list or attend an open house regulated under Ohio laws?
A: No. Although these “give-aways” may be inducements, they are not prohibited and do not have to be disclosed in the purchase contract. This is because the license law only covers inducements that are given to a buyer or seller to induce them to enter into a purchase contract. It does not cover inducements that are given to entice someone to attend an open house or to list his property. Thus, items that are given for this purpose are not illegal and are not required to be recited in the purchase contract.
4: Is it an inducement if I reduce my commission to get the seller to accept an offer?
A: Yes. When you agree to reduce your commission you are giving the seller something of value. If this is done to get the seller to enter into a contract, then it must be disclosed in the contract to be “legal” under Ohio’s license law.
5: Can I rebate part of my commission to a buyer or seller, or give them any other type of inducement?
A: Yes. Ohio license law permits a licensee to give an inducement to a buyer or seller if it is disclosed in the purchase contract as part of the consideration.