The rebate sounds great but what’s the catch?

The only “catch” is that there could be potential tax consequences that should be discussed with your tax professional. Other real estate agents may not be thrilled that Victors Realty can offer a rebate because of our reduced overhead expenses. However, even the National Association of Realtors in the October 2010 edition of REALTOR magazine (article by Bruce Aydt on page 16) acknowledges that there is nothing ethically wrong with offering freebies to clients. The article references applicable sections of the “Code of Ethics and Standards of Practice of the NATIONAL ASSOCIATION OF REALTORS” and comes to the conclusion that “Freebies are OK if Terms Are Clearly Disclosed.” The applicable Standard of Practice 12-3 states that “The offering of premiums, prizes, merchandise discounts or other inducements to list, sell, purchase, or lease is not, in itself, unethical even if receipt of the benefit is contingent on listing, selling, purchasing, or leasing through the REALTOR  making the offer.”