As a Chicago Realtor who pays my buyer clients a generous portion on my commission, I often receive questions about the legality of such providing such rebates. First of all, as a law-abiding citizen, I would never even consider doing something outside of the law especially where my livelihood is concerned. Second, with very little Google research you will find that real estate rebates are legal in many states, including Illinois.

That doesn’t mean that anti-consumer forces have not been at work here in Illinois. In 2008, legislators in Springfield attempted to pass HB 4313 which would have amended the Real Estate Act of 2000 to outlaw real estate cash back rebates. I never quite understood why any lawmaker would want to pass such an anti-competitive bill that would certainly cost their constituents more in additional real estate commissions. Fortunately for consumers, the USDOJ sent a letter to the Illinois General Assembly supporting cash back rebates and the anti-competitive nature of HB 4313. The billed died in session on January 13, 2009 preserving the rights of taxpayers and maintaining the current brokerage competitive environment.

The U.S. Department of Justice Antitrust Division has prepared an excellent resource concerning Competition and Real Estate. This website contains useful information about broker laws and practices in all 50 states. Upon reviewing this data, you will find that there are currently 11 states that have enacted anti-consumer real estate brokerage laws including making it illegal for brokers to pay cash back rebates to their clients. The USDOJ themselves have deemed these types of laws as “barriers to a more competitive real estate brokerage market”.

Closing Cash Realty provides two programs in which clients can receive cash back rebates when buying Chicago properties: our Buyer Rebate Plan and our Agent Referral Plan:

• Buyer Rebate Plan: We will pay you a rebate of up to 50% of our commission when you buy a qualifying home and use Closing Cash Realty as your Realtor®. You can use your cash rebate for closing costs, to purchase furniture, buy a new pet, or whatever you choose. We provide our buyer clients with this rebate because we know that you’re going to perform most of your search on the Internet anyway, so why shouldn’t you share in the commission?
• Agent Referral Plan: Are you outside of the Chicago metro area but still desire to receive cash at closing when purchasing Illinois real estate? By using our Agent Referral Plan, we’ll pay you 33% of our referral fee after closing. Depending on the purchase of your new home or the selling price of your existing home, this can mean several hundred dollars of cash in your pocket.

If you are a qualified Illinois homebuyer and would like additional information, please feel free to visit my website or call me today at 312-282-7239.

Louis Gomez, CPA is a licensed Chicago real estate broker operating throughout the city and suburbs. As the owner of Closing Cash Realty, Louis specializes in providing buyer clients with $1,000s in real estate cash rebates through his Buyer Rebate Plan. Whether you are a first-time homebuyer or a seasoned investor you’ll appreciate my professionalism and 24/7 availability.