What is an example of an agent giving their buyer client half of their commission without disclosing it on the settlement statement?

The concept of an agent giving a buyer client half of their commission without disclosing it on the settlement statement is known as an illegal buyer rebate. This occurs when the agent offers part of their commission back to the buyer without properly disclosing this information to all parties involved in the transaction, particularly the seller or the seller's agent.

In real estate transactions, transparency is crucial, and any rebates or adjustments to commissions must be clearly documented in order to uphold legal and ethical standards. An illegal buyer rebate violates these standards by operating in secrecy, thereby circumventing the necessary disclosures that ensure all parties are fully informed about the financial aspects of the deal.

This type of practice could lead to serious legal repercussions for the agent and complicate the transaction overall, as it undermines the trust and integrity expected in real estate dealings.