BrokerageIndustry News

State lifts real estate rebate ban

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The Kentucky Real Estate Commission has tossed out former restrictions on real estate rebates to settle a lawsuit brought by the U.S. Department of Justice. The federal agency had charged that the state's rebate ban could result in higher prices for real estate services and could limit competition among real estate brokers. Formerly, all forms of real estate inducements and rebates paid by real estate professionals to consumers were not allowed in Kentucky. The state passed an emergency regulation Wednesday, effective immediately, that reverses the ban on rebates and inducements and requires that real estate professionals provide written notice about rebates and inducements to their clients or customers, said Norman Brown, executive director for the Kentucky Real Estate Commission. The settlement agreement between the commission and Justice Department will be considered by the U.S. District Court for the Western District of Kentucky after a 60-day public comment period. The Justice D...