Should Commission Rebates be included as part of the Residential Contract for resale?

Question:  Should Commission Rebates be included as part of the Residential Contract for resale?

Answer:  No. A rebate of any commission between an agent and the party they represent is an independent agreement to the resale contract. It should not be included as part of the underlying transaction. The reason to avoid making it a part of the contract is because should there be a problem with the payment of the commission then it would affect the underlying contract.
With that said, TREC rule 535.147 does require that this information be disclosed to all parties. While it should not be included as part of the sales contract it should be included as part of the HUD-1 Settlement Statement and in the representation agreement.

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