Which states currently ban rebates and/or inducements?

Ten states currently have laws that ban rebates. Nine states have a full ban on broker rebates: Alabama, Alaska, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, Oregon, and Tennessee. In addition, Iowa prohibits rebates when the consumers use the services of two or more real estate brokers during a transaction.

** Indicates states that prohibit rebates.
For a complete listing, see Guide to State Real Estate Laws and Regulations.

Department of Justice Efforts to Lift Rebate Bans

The Division investigates state commissions and other bodies that regulate real estate brokers in ways that restrict licensed brokers from offering rebates. The Division also informs states about the competitive effects of real estate legislation. This section provides details on the Antitrust Division’s efforts in selected states:

Kentucky

U.S. v. Kentucky Real Estate Commission

Montana

April 1, 2008

Montana Board of Realty Regulation Permits Real Estate Brokers to Offer Rebates to Consumers

New Jersey

November 12, 2009

Letter to New Jersey Senate Re: Senate Bill 139

South Dakota

August 17, 2005

Press release: South Dakota Real Estate Commission Permits Real Estate Brokers to Offer Rebates and Inducements

Tennessee