Florida Real Estate Lawyers Blog
By: Alejandro E. Jordan, Esq.
As you know, in today’s real estate market, everything that is listed on the multiple listing services is available to be seen on hundreds of duplicated websites at no cost to you. Independent surveys state that over 95% of buyers search the Internet to find a home. Virtually no one surveyed said their agent found them a home that they had not seen on the Internet or by driving around. If you are one of the over 95% of the buyers out there doing their own homework, we figure why not pay you for your efforts so that you save money on your transaction closing costs.
Serving the Next Generation of First-Time Home Buyers
Today, Millennials (even Gen X and Gen Y) prefer to research information online or through their friends. Our clients are savvy home buyers. They’re involved in their search and know what they want. They don’t need an agent to look on the Internet for new listings. There are plenty of online tools they can use for that. They don’t need an agent to drive them all over town every weekend. And, they certainly don’t want to pay a full commission just to close the deal. Buyers want someone who is on their side and who is hired to represent their interests.
How does the Real Estate Consulting Model Work?
It’s simple, Buyer’s real estate agent will rebate you up to 50% of the real estate commission paid by the Seller back to you at closing. For example:
| Purchase Price | 3% Commission paid by Seller | 50% REBATE back to Buyer at Closing |
| $300,000 | $9,000 | $4,500 |
| $600,000 | $18,000 | $9,000 |
| $1,000,000 | $30,000 | $15,000 |
Is this legal?
Yes, real estate law in Florida says that a broker can give a broker incentive to any buyer as long as the proper disclosures are used.
Although Section 475.25(1)(h), Florida Statutes, generally provides that a licensee may not share real estate compensation with an unlicensed person, Rule 61J2-10.028(h), Florida Administrative Code, creates an exception:
“The sharing of brokerage compensation by a licensee with a party to the real estate transaction with full disclosure to all interested parties is not considered a violation of Chapter 475, Part I, Florida Statutes.”
Please note that “all interested parties” should conservatively include any person or entity involved in the deal. For example, the buyer’s lender would need to know about the commission rebate, as it could impact the lender’s loan calculations.
Alejandro E. Jordan, Esq. is the Chair of the Jordan Pascale, P.L.’s Transactional Real Estate Law Group, and a licensed Florida Real Estate Professional with over a decade of experience in the business of real estate, finance, development and marketing. His broad base of knowledge allows him to stay ahead of the game and keep abreast of the latest market trends. If you have any questions on whether or not a particular real estate investment is right for you, need assistance in acquiring or in analyzing due diligence on a particular opportunity, contact us at 305-501-2836 or visit us at www.JordanPascale.com for immediate assistance.
