Although Partner Agents and Users of our platform agree to the terms and conditions set-forth, Homebate® cannot require Partner Agent activity past granting access to our website systems. All agreements for commission rebates must be confirmed in a separate written agreement between Partner Agents and Buyers or Sellers. The following is a guideline for providing a Homebate® commission rebate according to the agreed upon terms.
Partner Agents that choose to use the Homebate® platform to advertise their ability to list a property for a Seller, agree to sell the home for 1% of the sales price under the following circumstances: (1) The Partner Agent receives a minimum commission in relation to the Seller’s contract of $2,500, (2) The Partner Agent and Seller paid all fees required by Homebate®, (3) The Seller is in compliance with this agreement and all Homebate® policies.
Partner Agents that choose to use the Homebate® platform to advertise their ability to make an offer for a Buyer, will rebate the commission received up to 3% of the sales price under the following circumstances: (1)The Partner Agent actually received a commission in relation to the Buyer’s contract, (2) The Buyer is in compliance with this agreement and all Homebate® policies, (3) The Buyer’s lender approves, (4) The rebate appears on the HUD statement (and applicable forms), (5) The rebate is in compliance with all state statutes, (6) The commission the Partner Agent earned is greater than $5,000, (7) The Partner Agent and Buyer paid all fees required by Homebate®.
The rebate applies to any home listed in the multiple listing service (MLS), new construction, and more. You do not have to buy a home listed by a Homebate Partner Agent to qualify.
The rebate is included on your settlement statement at closing as a credit from your agent. You may use the rebate to pay closing costs, pay down loan principal, pay prepaid expenses like home owners insurance or pay down the interest rate with points. All rebates are subject to lender approval and state law. Speak to your lender at the earliest possible time regarding any rules or restrictions they have regarding commission refunds.
The rebate shall never exceed the amount of commission received by the Partner Agent. The Partner Agent is not required to rebate any portion of the commission that exceeds 3% of the sales price. The Partner Agent is not required to make any payments to a Buyer other than a commission rebate that meets the aforementioned requirements. Any commission credit not approved by the lender shall be credited back to the Partner Agent or Homebate®.
The IRS has ruled that commission refunds are not taxable income. The refund is a reduction in the cost of the home you buy. That said, it is recommended that you contact a tax professional regarding any potential tax implications.
Commission refunds are legal in 40 states. See the U.S. Department of Justice (DOJ) website for additional details on if Home Rebates are legal in your state at: https://www.justice.gov/atr/rebates