NJ Buyer’s Rebate in NJ Making a Stir



Posted: Wednesday, May 26, 2010

by PRA Law
Pellettieri, Rabstein & Altman

Former Governor Jon Corzine recently signed an A-373 on January 17th, 2009 for the state of New Jersey. This new law gives buyers a rebate in a real estate transaction. The bill allows a New Jersey real estate broker to issue a rebate to a client from the commission the broker receives in the transaction. The bill went into immediate effect directly after being signed. The Real Estate Commission intends to enact rules to the law to allow it to be more effective and efficient. The Real Estate Commission of New Jersey has set many restrictions as to who may provide and receive a rebate, conditions, limitations, and requirements. Only a New Jersey real estate broker may issue a rebate. The rebate must only be provided to the buyer of a residential property. A broker and the purchaser must agree in a written or electronic document or a buyer agency agreement. The real estate broker must meet the terms of any state or federal requirement in regards to the disclosure of the payment. The broker must advise the buyer to contact a tax professional with any tax implications of receiving the rebate. Lastly, the real estate broker must release the payment of the rebate to all people involved in the transaction.

There seems to be pros and cons to this new rebate check. It seems to be a good thing when buyers are given more choices and opportunities to save money in New Jersey real estate. This rebate promotes buying homes in New Jersey which is certainly an advantage. On the other hand, some believe that buyers are receiving financial rebates for work being imposed onto the listing agent who shows the home. Some buyers might miss the negative features of the home that a good real estate agent would normally point out.

When you ask just about any home buyer how they would feel about money back at closing the reaction would generally be in favor of receiving the rebates. The rebates can range anywhere from a half of a percent to two percent of the NJ homes purchase price. It is essential to know how the rebate works, where the money comes from, how the rebate will affect the price of their next home, and basic knowledge to get the best rate with a good New Jersey real estate broker. Home buyers should be informed as to the form of the real estate rebate so they can make an informed decision.

About the Author

Craig Lewis is a certified home inspector and owner of LH Inspections in central New Jersey . Craig is the creator of innovative online real estate sales tools that help his clients sell pre-inspected homes in the central NJ area. These tools include http://www.presurveyedhomes.com, http://www.njflatfeelistings.com and http://blog.njflatfeelistings.com

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Top-level comments on this article: (1 total)
» left by Jennifer Stewart
 2 years 1 day ago.
153 fans.
It's seems generally to be true that you don't get something without paying for it somewhere.
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