How a buyer commission rebate works on a new condo in Florida
The developer pays the commission and part of it returns to the buyer
- Florida rule that permits disclosed rebates
- 61J2-10.028
- Florida rule that permits disclosed rebates
- Ban rebates outright and Florida is not one
- 10 states
- Ban rebates outright and Florida is not one
- When your brokerage must register you
- Before first visit
- When your brokerage must register you
- Bars paying unlicensed people for referrals
- Section 475.25
- Bars paying unlicensed people for referrals
Palm Beach developers pay the buyer's brokerage a commission whether or not the buyer brings one. Florida's Real Estate Commission rule 61J2-10.028 states that sharing brokerage compensation with a party to the transaction, with full disclosure to all interested parties, is not a violation of the licensing law. The Premier Connection returns part of its commission to the buyer as a closing credit, confirmed in writing before signing. The catch is procedural: the brokerage must register the buyer before any contact with the sales gallery.
The short answer
- Rule 61J2-10.028(2) permits sharing commission with a party to the transaction when there is full disclosure.
- Section 475.25 bars sharing commission with unlicensed persons for referrals, which is a different thing from a buyer credit.
- The rebate appears as a buyer credit on the closing statement and is disclosed to the developer and any lender.
- Registration with the developer must come before the buyer's first contact with the sales team, or there is no commission to share.
- The credit is confirmed in writing for a specific residence before the buyer signs anything.
Florida permits a rebate disclosed to every party
Florida Administrative Code rule 61J2-10.028 addresses kickbacks and rebates. Its first paragraph makes undisclosed kickbacks a violation. The second is the one that matters to buyers: the sharing of brokerage compensation by a licensee with a party to the real estate transaction, with full disclosure to all interested parties, is not considered a violation of Chapter 475.
The statute itself draws the boundary. Section 475.25 prohibits paying unlicensed persons for referrals or brokerage services. A rebate must therefore go to the buyer in the transaction, never to a friend who sent the buyer.
Florida also stands outside the federal list. The joint report on real estate competition by the Department of Justice and Federal Trade Commission names 10 states that ban rebates outright: Alabama, Alaska, Kansas, Louisiana, Mississippi, Missouri, New Jersey, North Dakota, Oklahoma and Oregon. Iowa restricts them. Florida is not among them.
The developer pays the commission at closing
- The buyer signs a buyer-broker agreement with The Premier Connection that states the credit in writing.
- The Premier Connection registers the buyer with the developer's sales team before any visit, call or email to the gallery.
- The buyer views, contracts and closes exactly as otherwise; the developer pays the brokerage commission at closing.
- The rebate appears as a credit to the buyer on the closing statement, disclosed to the developer and the lender.
- With financing, the lender decides how the credit is treated; most allow it against closing costs and prepaids, and some cap it.
Register before the first contact with the gallery
Developers protect their sales teams. A buyer who walks into a gallery, registers on the developer's website or calls the listed number before a brokerage has registered them becomes, for most developers, their own prospect. No outside commission is paid, now or ever on that building, and the rebate disappears before it exists.
The Premier Connection asks every buyer to follow one simple rule. Name the buildings of interest before contacting any of them, and let the brokerage handle every introduction.
The closing credit estimator gives an estimate at any price, and a credit letter then confirms the figure for a specific residence.
A rebate leaves the contract price unchanged
A rebate is not a discount from the developer, and it does not change the contract price. It is unavailable if the developer declines to pay a co-broke, which is rare on Palm Beach towers but should be confirmed per building. It is not a fee the buyer pays, since the brokerage is compensated by the developer. No lender guarantees the credit until underwriting approves it.
General information, not legal or tax advice. Statutes change and the sources are dated. For every new tower with its figures and floor plans, open the index.
Questions this article answers
Is a buyer commission rebate legal in Florida?
Yes. Florida Administrative Code rule 61J2-10.028(2) states that a licensee sharing brokerage compensation with a party to the transaction, with full disclosure to all interested parties, is not a violation of Chapter 475. Florida is also absent from the federal list of states that ban rebates.
Which states ban real estate commission rebates?
The joint report by the Department of Justice and Federal Trade Commission names 10 states that ban rebates outright: Alabama, Alaska, Kansas, Louisiana, Mississippi, Missouri, New Jersey, North Dakota, Oklahoma and Oregon. Iowa restricts them. Florida is not on the list.
Who pays the buyer's broker commission on a new condo in Palm Beach?
The developer does. Palm Beach developers pay the buyer's brokerage a commission at closing whether or not the buyer brings one, so the buyer pays The Premier Connection no fee. Part of that commission can return to the buyer as a closing credit.
When must a buyer register with a broker to get a rebate on a new condo?
Before the first contact with the sales gallery. A buyer who visits, registers on the developer's website or calls the listed number first is treated by most developers as their own prospect. They pay no outside commission on that building, so there is nothing to share.
How does a commission rebate show up at closing on a Florida new condo?
It appears as a credit to the buyer on the closing statement, disclosed to the developer and any lender. The credit is stated in a buyer-broker agreement and confirmed in writing for the specific residence before the buyer signs anything.
Can a buyer use a rebate when financing a new condo purchase?
Usually, though the lender decides how the credit is treated. Most lenders allow it against closing costs and prepaids, and some cap it. No lender guarantees the credit until underwriting has approved it.
Does a commission rebate lower the contract price of a new condo?
No. A rebate is not a discount from the developer and leaves the contract price unchanged. It is part of the commission the developer pays the brokerage, returned to the buyer as a credit at closing.
Can a Florida commission rebate go to someone who referred the buyer?
No. Section 475.25 bars paying unlicensed persons for referrals or brokerage services. A rebate must therefore go to the buyer in the transaction, never to a friend who sent the buyer.
When is a buyer rebate not available on a Palm Beach new condo?
When the developer declines to pay a co-broke, or when the buyer contacted the developer before a brokerage registered them. Declining a co-broke is rare on Palm Beach towers, but it should be confirmed building by building.
SourcesShow
- Florida Administrative Code rule 61J2-10.028: Kickbacks or rebatesCornell Legal Information Institute · 2026
- Section 475.25, Florida Statutes: DisciplineFlorida Legislature · 2026
- How the 2024 commission rules changed buyer rebates in FloridaFlorida Real Estate Lawyers Blog · June 11, 2026
- Competition in the Real Estate Brokerage Industry: a report by the FTC and DOJU.S. Department of Justice and Federal Trade Commission · 2007
