Commission Rebate Agreement Sample – hblogs

Commission Rebate Agreement Sample: An Overview

A commission rebate agreement outlines the terms and conditions under which a commission rebate is granted to a client. This type of agreement is common in the real estate industry, where real estate agents may offer rebates to clients who buy or sell a property through their brokerage.

A commission rebate is a percentage of the commission paid to the real estate agent or brokerage that is passed on to the client. This can be an incentive for clients to work with a particular agent or brokerage and can help to reduce the cost of buying or selling a property.

If you are a real estate agent or broker, it is important to have a commission rebate agreement in place to protect both parties. This agreement should outline the terms and conditions under which a commission rebate is granted, including the percentage of the commission that will be rebated, the conditions under which the rebate will be granted, and any restrictions on the use of the rebate.

Sample Commission Rebate Agreement

Below is a sample commission rebate agreement that you can use as a starting point for your own agreement. It is important to customize this agreement to meet your specific needs and to consult with a legal professional before finalizing any agreements.

Commission Rebate Agreement

This Commission Rebate Agreement (“Agreement”) is made and entered into on [Date] by and between [Real Estate Brokerage or Agent], (“Brokerage” or “Agent”) and [Client], (“Client”).

WHEREAS, the Brokerage or Agent has agreed to offer a commission rebate to the Client under the terms and conditions of this Agreement;

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties agree as follows:

1. Commission Rebate. The Brokerage or Agent agrees to provide the Client with a commission rebate of [percentage] percent of the commission paid to the Brokerage or Agent in connection with the sale or purchase of real estate by the Client.

2. Conditions of Rebate. The commission rebate shall be paid to the Client at the close of escrow, subject to the following conditions:

(a) The Client must have entered into a written agreement with the Brokerage or Agent for the purchase or sale of real estate.

(b) The commission rebate will be based on the actual commission paid to the Brokerage or Agent, net of any refunds, credits or other reductions of commission.

3. Restrictions on Use of Rebate. The Client agrees to use the commission rebate only for the payment of closing costs or as otherwise allowed by law and not for any other purpose.

4. Termination. This Agreement may be terminated by either party upon written notice to the other party.

5. Entire Agreement. This Agreement constitutes the entire agreement between the parties and supersedes all prior negotiations, understandings, and agreements between the parties.

6. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of [State].

7. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

[Real Estate Brokerage or Agent]

By: ______________________

Name: _____________________

Title: ______________________

[Client]

By: ______________________

Name: _____________________

Title: ______________________

Conclusion

A commission rebate agreement is an important legal document that outlines the terms and conditions under which a commission rebate is granted to a client. This agreement should be customized to meet the needs of both the real estate agent or broker and the client and should be reviewed by a legal professional before being finalized. By having a commission rebate agreement in place, both parties can be protected and understand the terms and conditions of the transaction.