I have an agent who seems to have made a deal with a Buyer (who's also a loan officer, but NOT on this deal) to give a "rebate" AFTER closing to the Buyer.

This rebate was _NOT_ reported on the HUD-1 -- the transaction closed last week. However, there was a separate "Realtor Contribution" that WAS reported on the HUD-1.

IF my agent follows through with the "rebate," which is NOT reported on the HUD-1, would that be viewed as a kickback or some other violation because it's not on the HUD-1?

Thanks for the quick reply!

I am not a lawer but I think it isnt unethical to rebate part of your comission back to the buyer, but you cannot rebate a third party for a referral fee.

NOT LEGAL ADVICE!

Please read up on this here. State laws change all the time and each agent must check with their state laws (and the buyers lender).
http://www.realtor.org/rmomag.nsf/pages/lawjan06

Maybe yes, maybe no; it depends on what state you're in.

It's against the law in California, but I can't speak for other states.

I can't give legal advice, but check with the state's laws.

Are we saying that I can't spend my commission any way I want?

So what was the Realtor contribution on the HUD-1 if it was not the rebate? Arizona allows rebates, but they must be in the HUD-1 at closing and allowed by the lender. 2004Ferne - as said, depends on your state, you should check before giving commission money to your clients.

Maybe; it depends on your state's laws.

In Tennessee where I practice real estate it is illegal to rebate any portion of your commision back to a buyer or seller in cash or anything that could be converted to cash.

You can give a gift card or any other type closing gifts.

This is a good link from HUD and should answer a lot of your questions...

http://www.hud.gov/offices/hsg/sfh/res/respamor.cfm