Yes. Real estate broker commission rebates are legal in 40 states, including New York state.  NY Attorney General Eric T. Schneiderman issued an public letter to confirm that commission rebates are legal.

Section 442 of New York’s Real Property Law was amended to leave no room for debate. Buyer rebates are legal.

Except when permitted pursuant to the foregoing provisions of this section no real estate broker shall pay or agree to pay any part of a fee, commission, or other compensation received by the broker, or due, or to become due to the broker to any person, firm or corporation who or which is or is to be a party to the transaction in which such fee, commission or other compensation shall be or become due to the broker; provided, however, that nothing in this section shall prohibit a real estate broker from offering any part of a fee, commission, or other compensation received by the broker to the seller, buyer, landlord or tenant who is buying, selling, exchanging, leasing, renting or negotiating a loan upon any real estate including the resale of a condominium or cooperative apartment. Such fee, commission, or other compensation must not be made to the seller, buyer, landlord or tenant for performing any activity requiring a license under this article.

Categories: Buyer Rebates

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