Can Realtors Share Commissions with Buyers in Connecticut?

In Connecticut, real estate commission rebates are legal, making them an appealing option for savvy homebuyers looking to save on costs. This practice, also called commission sharing or realtors sharing commissions with buyers, involves the buyer’s agent sharing a portion of their commission with the buyer—typically as cash back, a check, or a credit at closing. Given the high costs associated with buying a home, these rebates can provide substantial financial benefits to buyers.

The legality of real estate commission rebates varies across the U.S. Some states prohibit or restrict the practice due to industry rules or concerns about transparency and fairness. However, Connecticut real estate law allows for commission rebates as long as they’re properly disclosed and follow specific guidelines.

According to the Connecticut Real Estate Commission, agents and brokers can provide commission sharing to buyers, but the details of the rebate must be clearly outlined in writing. This transparency helps ensure that both parties fully understand the arrangement and prevents misunderstandings down the line.

For Connecticut home buyers, commission sharing can be highly advantageous. On a $2,000,000 home, for example, the typical commission might be around 5-6%, split between the buyer’s and seller’s agents. If the buyer’s agent offers a rebate of 1.25% of the purchase price, this could mean a $25,000 savings for the buyer. This rebate could cover closing costs, fund home improvements, or reduce the overall financial burden of buying a home. Buyers should confirm the rebate amount and structure early on when selecting an agent, as very few agents offer commission sharing. If a prospective agent refuses to offer you a rebate, Call Cress; we’d be glad to assist.

Overall, commission sharing offers Connecticut homebuyers a valuable tool for managing real estate costs. By understanding the legalities and working with the right real estate agents, buyers can make the most of this opportunity and navigate the market more affordably.

Learn More at: https://www.justice.gov/atr/how-rebate-bans-discriminatory-mls-listing-policies-and-minimum-service-requirements-can-reduce