Yes, NYC broker commission rebates are completely legal. Buyer’s agent commission rebates are permitted in 40 states including the State of New York. It is fully permitted by law in New York City both for an agent to offer and for a buyer to accept a commission rebate in conjunction with the purchase of residential real estate.
Ten states currently have laws that ban rebates. Nine states have a full ban on broker rebates: Alabama, Alaska, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, Oregon, and Tennessee. In addition, Iowa prohibits rebates when the consumers use the services of two or more real estate brokers during a transaction.
Attorney General Eric T. Schneiderman recently issued an open letter urging participants in the New York residential real estate market to take advantage of a recent change to the State’s Real Property Law confirming that real estate agents may rebate a portion of their commissions to clients. The New York Attorney General released a letter to the New York Real Estate community urging them to take advantage of rebate commission opportunities to increase price competition and benefit consumers. A full copy of the letter may be read below: