Are rebates legal in Wisconsin and can a broker rebate a portion of the selling commission they receive?
A. There is nothing in the statutes or rules of the board which prohibit a real estate broker from providing a cash payment or other consideration to a buyer in order to induce their puchase of real estate. Providing incentives to prospective buyers or sellers by real estate licensees is not prohibited. Wis. Stats. s. 452.19 prohibits real estate brokers from paying “referral ” or “finder’s fees” to unlicensed individuals who are not prospective puchasers or sellers. Under this statute an unlicensed person may not receive compensation from a broker for referring others to the broker. You can not be compensated by a broker for referring your friend to a broker as a prospective buyer or seller. Q. The broker failed to disclose the following, for example: lead based paint, a defect of some kind, a nearby land fill, a new microwave tower, etc. A. Generally, if the broker knew or became aware of information suggesting the possibility of the presence of lead based paint, or a property or str
