BrokerageIndustry News

Brokerage terminates agent who founded rebate network

Long & Foster cites concerns about rebate business model

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Ron Patterson, a Long & Foster Realtor who launched a rebate referral network, received notice Wednesday that the brokerage company had terminated its association with him, he told Inman News. Patterson's Realty Legacy business model, which was featured in a March 7 Inman News article, offers rebates to consumers outside of the settlement process. Through a contract agreement with agents in the Realty Legacy network, home sellers can receive a rebate of at least 1.5 percent of the selling price of their homes, and buyers receive a rebate on any amount above 1.5 percent of the sales price that their agent receives for participating in a transaction, according to a Web site description. Paul DiCicco, vice president and regional manager of Northern Virginia operations for Long & Foster, said in a statement, "It is against company policy for me to discuss the grounds for terminating association with any of our agents." Patterson, a former lawyer who has spent the past 25 years wo...