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Minutes for SB42 - Committee on Commerce
Short Title
Amending the meaning of the terms "rebate" and "interest" as used in the real estate brokers' and salespersons' license act.
Minutes Content for Tue, Feb 18, 2020
Chairperson Lynn recognized Mark Tomb, Kansas Association of Realtors, who provided an update on the bill. (Attachment 2)
Kansas is one of ten states that ban rebates in real estate transactions. The Legislature has not provided in statute a definition of "rebate". The testimony included a history concerning the rebate prohibition in Kansas and a December 2018 opinion from the Kansas Attorney General's Office. The bill provides the following definitions:
"Rebate" means the return of all or part of the purchase price of real estate, whether by cash or cash equivalent, that is promised or agreed to by a licensee and a client or customer before closing and is contingent on the transaction closing.
"Rebate" includes the return of all or part of any commission or compensation paid to a licensee in any transaction that has as its purpose the purchase of real estate at a price different from the price specified in the closing statement. For the purposes of defining "rebate", "cash equivalent" means gift cards, prepaid credit cards and any other item with a value equal to a specific amount of money that can be used in the same manner as cash.
Mr. Tomb urged support of the bill in order to clarify what is a rebate in Kansas law.
There were no questions.
