Hello Experts, can you please take a look at each of the scenarios and say you would still like to consider it as rebate / concession where 1099 is not required to be issued to buyer?
There are couple scenarios here (OfCourse many, but simplifying for sake of conversation)
1.) Builder / Seller pays the commission to broker and Broker gives a Disbursement Agreement to Closing agent, by which lender uses that form to help use the rebate money as price adjustment or closing costs.
2.) Builder / Seller pays the commission, but buyer elects to buy with Cash, now the commission given to buyer agency is considered as agency income. And if we pay out to buyer from this income, it's not a rebate anymore it's like sharing broker's income with someone else.
In scenario 1.) its rebate and in Scenario 2.) it is not a rebate.
How I view Rebate / Concession:
Rebate is something I charge at first and reduce later, in this case realtor / brokerage is not charging anything to customer, so giving back from brokers income is not considered as rebate.
