A rebate or other monies paid on behalf of the licensee to their client should be paid through escrow upon specific written instructions of the broker.
The intent to pay such monies to a client should be reported to all parties involved.
Some loan programs do not allow such rebates.
“Cash Back” transactions are not appropriate unless the rebate is disclosed in the body of the contract; all parties (broker, loan officer, mortgage lender, title company, etc.) are fully aware of the monies being remitted to the client; and, the monies are clearly disclosed in the Closing Statement.