FAQs
The commission is typically a percentage of the sale price of the property and is usually split between the listing agent and the buyer's agent. A commission rebate is a way for the client to receive a portion of the commission back, which can result in cost savings for the client.
What does fee rebate mean? ›
However, if the investor is charged the same management fee as the one specified in the fund terms, but once that fee is received by the management company, the investor receives a portion of its fee back as a rebate, this is considered a Fee Rebate.
What is the fee and rebate charge? ›
When a security is loaned out, a loan fee is charged to the borrower of the shares, along with any interest due related to the loan. Holders of the securities that were loaned receive a portion of this fee as a rebate from their brokerage.
How do rebates work? ›
How do rebates work? Rebates work by helping to put money back in the customer's pocket. This could be through a check, gift card, credit or some other form of payment. But customers may need to mail in a form with proof of purchase, submit information online or go through another process to earn their rebate credit.
Is it legal for licensed real estate brokers to rebate commissions known as cash rebates to ________________ in New York? ›
While it's certainly not permissible for a broker or salesperson to split a commission with an unlicensed party, brokers and salespeople are fully permitted and encouraged to offer rebates (cash or otherwise) to their actual customers (buyers and renters).
What does it mean to rebate commissions? ›
Published Jan 14, 2023. A commission rebate is a form of compensation offered by some real estate agents in which a portion of the commission earned on a real estate transaction is returned to the client.
Does rebate mean refund? ›
Unlike immediate discounts at the point of sale, rebates are refunded after the purchase has been made. Rebates work on the premise of offering buyers money back following their purchase. This refund can be in various forms, like cash, credit notes, or future discounts on products and services.
What does rebate mean in payment? ›
Rebate means "an amount of money that is paid back to you because you have paid too much or as an incentive for buying something." Here are a couple of examples: We hope to get a big tax rebate this year. My new car came with a $1000 rebate.
What is an example of rebate? ›
The simplest example of a rebate and most popular is a volume rebate program which rewards trading partners for purchasing higher volumes of a product. Volume incentives — also called tiered incentives or incentive bands — are a great method to help your company increase margins.
What is the fee and rebate rate? ›
fee rate is the rate I pay to the lender. my short sale proceeds are collateralized by the lender's broker which earns an interest and rebated to me. rebate rate is the netted rate, interest rebate - borrow rate (negative if I pay, positive if I am paid)
A rebate is a retroactive payment back to a buyer of a good or service. After the sale has been made, the rebate lowers the full purchase price by returning either a lump sum or percentage of the sales price back to the buyer. In some instances, rebates are offered only when a certain purchase volume has been met.
Are rebates good or bad? ›
They're way better for profit margins. In our example above, the rebate program costs 33% less. Savings will vary depending on the expected claim rate, but in general, a rebate is more cost effective than a discount even at a claim rate of 90%.
Why do companies give rebates? ›
Rebates offer retailers the benefit of giving customers a temporary discount on an item, to stimulate sales, while allowing it to maintain its current price point. This method avoids the negative backlash that could be perceived with a price being lowered and then raised later.
What is cash rebate pricing? ›
money refunded to customers who buy merchandise from retailers within a specified time; the rebate allows dealers to clear inventories without cutting list price.
Which of the following is considered rebating? ›
Rebating is the practice of giving something of value to an insured person as an inducement to buy an insurance policy. In the given scenarios, the situation considered rebating is Option B where a producer returns a portion of the commission to an insured.
Are rebates only allowed if specifically stated in the policy? ›
A rebate is an illegal act which involves returning something of value to the client as an inducement to buy, such as the commission. Rebates are only allowed if specifically stated in the policy. Insurance dividends are not considered rebates as the IRS considers it as a return of overpaid premium.
What does trading fee rebate mean? ›
Once the trading requirements are met, users will receive a rebate on their trading fees, which can be used to offset future trading costs. It's important to note that the rebate voucher has an expiration date, so users should be sure to use it before it expires.
What do you mean by rebate? ›
A rebate is a partial refund of the cost of an item. It acts as an incentive to help sell the product. If your new cell phone came with a rebate, you'll get a check in the mail for a certain amount of the cost.
What is rebate in payment? ›
Rebate meaning
A rebate is, by definition, a sum of money that is paid back to you. You'll most commonly have experienced this in the form of a tax rebate, i.e., a situation in which you have paid too much tax and are due a repayment.
Does rebate mean cash back? ›
A rebate is an upfront discount that gives you cash back after you make a purchase, and typically more quickly than a tax credit.