Monday, February 18, 2008

Illinois anti-rebate legislation (HB 4313)

An Illinois broker recently informed me that State Representative Robert Molaro (who himself does not appear to be a licensed broker or salesperson in Illinois) has introduced anti-rebate legislation in Springfield. The bill is scheduled to be heard this Thursday by the Judiciary I - Civil Law Committee.

Here's the synopsis offered on the legislature's website:
Amends the Real Estate License Act of 2000. Provides that no licensee shall give or pay cash rebates, cash gifts, or cash prizes to an unlicensed person who is a party to a contract to buy or sell real estate. Provides that a licensee may offer compensation, including prizes, merchandise, services, rebates, discounts, or other consideration to an unlicensed person who is a party to the lease of real estate, so long as the offer complies with certain provisions of the Act. Effective immediately.
If you have any additional information, please share it here.

4 comments:

  1. I like to call this Bill the Anti-Rebate Anti-Competition Anti-Consumer Bill - Could there be a worst time to hurt the Home buyers and Sellers from saving some of their own money from a transaction? I think its a terrible Bill!

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  2. This Bill failed so home buyer rebates are legal in IL,and they should be legal in every state because they promote price competition amongst real estate brokers and reduce the cost of housing for consumers.

    David Gorman/Broker
    Cashback Realty.com
    discount real estate
    real estate rebates
    Cash back Real Estate

    ReplyDelete
  3. Generally speaking, when a seller lists a home, a portion of the commission is allocated for the buyer's agent; this process creates cooperation amongst agents to maximize the exposure of the home.

    If the buyer has no agent, then generally the 3% overage that was allocated for the buyer’s agent will be retained by the listing agent (seller’s agent). A savvy buyer can negotiate a rebate from a their buyer’s agent; in turn, this buyer’s agent should be focused on getting a better price & terms on behalf of the buyer.

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  4. This is a terrible bill. The bill proposer must receive a lot of "donation" from special interest group like Realtor Association.

    We should not vote for him next term.

    ReplyDelete