New Jersey Real Estate Practice Exam Practice Question

According to the Real Estate Licensing Law, a real estate licensee can provide a rebate of the commission to a buyer

Correct Answer: D

Rationale: A real estate licensee can offer a commission rebate to a buyer if a written confirmation of the rebate's terms is provided at closing, ensuring transparency and compliance with legal requirements.

Option A is incorrect because the authority to provide a rebate is not limited to brokers; any licensed agent can do so. Option B, while documentation is essential, simply notating on the contract of sale is insufficient without a formal written agreement at closing. Option C is misleading; although there may be limits in some jurisdictions, the law does not specify a maximum percentage for rebates, making this option too restrictive.

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