The Governor of Tennessee has signed a bill reinstating a ban on cash rebates in real estate transactions. This was at the urging of the Tennessee Association of Realtors®. The
article at Tennessean.com says in part about the Realtor Assn:
"They said the ban protects consumers from backroom deals between agents and outside parties, such as referral services and mortgage lenders.
The association also said discount brokerages can reduce their commissions by offering non-cash incentives, such as gift cards and services, or by renegotiating commission rates with sellers and their agents."
Why call it "protectionism?" A simple solution to protect the consumer AND allow them choices would be wording to allow cash rebates only to the principals in the transaction. Seems simple, so there must be other reasons for not doing it that way.
Yes this one all seems very dirty to be blunt. The allowance of rebates to buyers does admittedly have potential for abuse, but frankly as long as everything stays on the upper side of the table and is on the HUD-1…
… whats the problem?