BrokerageIndustry News

DOJ rips bill banning cash real estate rebates

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Realtor-backed legislation that would ban cash rebates to consumers in real estate transactions awaits the governor's signature in Tennessee. The U.S. Department of Justice opposes the bill, which it alleges "would impede real estate brokers from competing on price and force Tennesseans to pay more in real estate commissions." Also, the legislation would reverse a decision earlier this month by the Tennessee Real Estate Commission, a regulatory agency, to repeal a statewide ban on real estate cash rebates. The commission's decision, according to the Justice Department, was in response to the department's investigation of the state's rebate restrictions. Tennessee Association of Realtors officials say the legislation is pro-consumer and could lessen the risk that consumers will be drawn to participate in risky real estate deals. "The new law simply affirms Tennessee's long-standing practice of prohibiting cash rebates in real estate transactions," said J.A. Bucy, the Realtor...