A broker may rebate a portion of their commission to a client who is not licensed if what condition is met?

• A. The rebate is disclosed to all parties.
• B. The rebate is withheld from the other party.
• C. The rebate is approved by the seller only.
• D. The rebate is never disclosed.

Answer: (A)

Rebates to a client must be transparent to keep the transaction fair and above board. In Florida, a broker can rebate part of their commission to a client who isn’t licensed, but only if everyone involved is told about it in writing before the deal closes. This openness protects all parties from hidden incentives that could influence decisions or negotiations and satisfies ethical and regulatory expectations.

If the rebate isn’t disclosed to all parties, or if it’s kept from the other side, or if it’s only approved by the seller without informing the buyer, it undermines trust and can violate state rules. So the condition that makes the rebate acceptable is that the rebate is disclosed to all parties.