Brokers in Oregon are not allowed to share their commission with an unlicensed person. Often times a seller, buyer or third party will ask for a payment for a referral or as a rebate at closing to give the buyer a bigger incentive to purchase a home.Some Real Estate offices and franchises across the United States have built their business on helping buyers buy a home by offering a rebate at closing. In Oregon this is not acceptable, if your Real Estate professional offers this, they are breaking the law.
In 2007 this matter was reviewed and sponsored by Senator Winters. Changes were made to Senate Bill 673 which discusses the sharing of commission. To read the changes you can read it online at Senate Bill 673. The items in bold are the new and added verbabe to this bill, the state clearly states that sharing commission is unlawful.
Other states have taken the same stand on sharing commission; they include Montana, North Dakota, Iowa, Kansas, Missouri, Oklahoma, Tennessee, Mississippi, Alabama, Louisiana, New Jersey and Alaska.
The Department of Justice has a great website that talks about a lot of the questions that Real Estate Professionals and consumers alike have regarding Competition and Real Estate. With the competition of Real Estate Brokers in Oregon getting fierce, sellers getting frustrated and buyers hearing of kickbacks, rebates and discounts it is more important than ever that the consumer be educated about these laws.