New Jersey law (P.L. 2009, c. 273; NJ Real Estate Licensing Law) permits brokers to rebate a portion of their commission to a buyer provided that:
The rebate does not constitute a violation of RESPA or other federal laws.
The terms of the rebate are disclosed in writing to the buyer prior to closing.
The rebate must be documented in the transaction records maintained by the broker.
There is no statutory 50% cap, and it does not have to be written directly into the contract of sale. It is also not limited to the broker personally—salespersons may provide a rebate under the broker’s supervision.
[Reference: New Jersey Real Estate Commission – Licensing Law, Commission Rebates to Buyers, N.J.S.A. 45:15-17; NJREC Bulletins on Commission Rebates., ]
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