I implore all of you to be more thoughtful and honest about your responses before providing fallacious information to people seeking support.
I just spoke with an attorney at C.A.R. California Association of Realtors. As long as the lender is on board with the rebate it is 100% legal. Rebates are not illegal!
Contact Cleve Shirley and he will happily help you out - full service for less. Cleve@condoDomain.com
This kickback from industry suppliers is illegal because RESPA (Real Estate Settlement Procedures Act) clearly states that the buyer has the choice of which suppliers to use. If the agent gets a kickback from a particular bank for bringing in a client, well this may not be in the best interest of the client.
But RESPA does not state that you cannot give the buyer, himself, anything. It is clearly his choice.
I donâ€™t like it, but at times I must do it too.
I agree with you to an extent. I think that agents on Trulia shouldn't answer question unless they know the answer. I think if a question is asked about real estate in 92154 "Otay Mesa in San Diego California" an agent in another area let alone another state might want to think twice before answering it. When it comes to a question like the one asalasx1 asked it pertains to the state that they are buying the home in and it clearly stated South Bay San Diego which everyone should know is California. An agent from a different state could not possibly answer this question correctly. Rules are different in other states. Pete, don't be discouraged. I'm not sure we want the model of the Financial Industry do we? I think Trulia is good to gather information and then once the poster of the question reads the answers they can contact the agent who knows what they're talking about.
As far as rebates..... There's nothing backwards or wrong about an agent using some of their hard earned commission to help a home buyer out with closing costs to make their dreams of home ownership possible. I have done it from time to time and it shows how kind and caring some agents can be.
Mike Lewis - San Diego California Realtor
First Team Real Estate
Agents can offer rebates by paying out of their commissions buyers closing costs through escrow. So yes an agent can offer a rebate through escrow form their commission. I don't discount my services but some agents will. Please let me know if your want me to work for you undiscounted.