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from Local Attorney, Michael H. Wasserman

Friday, February 22, 2008

An End to Real Estate Agent Rebates?

The Spring legislative season has started in Springfield so our legislators are hard at work introducing laws we need (whether we need them or not).

Chicago lawmaker Robert Molaro has introduced a proposal to amend to the Illinois Real Estate License Act. HB 4313 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.

Bad news for discount brokers and other innovators; probably good news for anyone who wants to maintain the status quo and prevent brokerage commission slippage. Companies like Redfin, who appear poised to enter the Chicago market may have to rethink their buisness plans.

For some reason, licensees could still offer prizes, merchandise, rebates, discounts, or other consideration for rental situations.


This bill