Michael Ruff Home Buyer’s Rebate Agreement
Michael Ruff Home Buyer’s Rebate – New Construction Homes Only
(Also includes Quick Move-In and Builder Model Homes)
Rebate Eligibility: In order to be eligible for our Michael Ruff Home Buyer’s Rebate program, you must register us as your Realtor®/Real Estate Agent with your Builder (usually on your first visit to the Builder’s model), and we must be listed on the Builder’s Contract/Purchase Agreement for your new home as your Realtor®/Real Estate Agent. You must also sign this form and any state required real estate agency agreements and/or disclosures/notices that accompany this agreement.
Rebate Disclosure Requirement: It is required by Florida law that we disclose to all parties involved in the transaction that we will be rebating you a portion of our commission. So we will disclose this by sending a Realtor Credit/Commission Disbursement letter to the Builder, Lender, and Title Company before closing. Please note: All rebates are subject to Builder and Lender approval. (The Florida Real Estate Commission (FREC) Rule 61J2-10.028(2) provides that a licensee may share brokerage compensation with a party to a transaction as long as full disclosure is given to all interested parties.)
Rebate Amount: Our 1% Michael Ruff Home Buyer’s Rebate Program assumes a 3% agent commission; however, the minimum fee for our service is 1%. So if the commission offered by the Builder is less than 3%, your rebate will be adjusted accordingly (for example: .7% rebate if the Builder is only paying 2.5% commission, .5% rebate if the Builder is only paying 2% commission, etc.). To find out the commission the Builder is paying in order to estimate your rebate, you can simply ask the Builder’s Sales Agent what commission they are paying, or we can check with them to find out for you.
Realtor®/Real Estate Agent Bonuses: Some Builders offer Realtor®/Real Estate Agent Rewards, Broker Bonuses or some other type of additional compensation for agents with multiple sales in specific markets or communities (for example: Builder offers $1,000 bonus to Realtor®/Real Estate Agent for each additional sale that occurs within a 12-month period). Since these incentives are typically based on our prior sales history, Buyer(s) hereby acknowledges that any Broker “incentive”, “reward”, “bonus” or any other type of additional compensation offered to the Broker by the Builder will be specifically excluded from our rebate program.
Commission and Rebate Calculation Method: The method for calculating the Commission we receive (and the corresponding rebate you receive from us) can vary by Builder. Some Builders pay commissions on the total purchase price of the home, some only pay commissions on the base price of the home, and some only pay commissions on the price of the home at contract signing (base price + lot premium + structural upgrades, but not design center upgrades). Your Sales Agent can also let you know what amounts the Builder bases their commissions on, in order to estimate your rebate.
Rebate Disbursement: Your Michael Ruff Home Buyer’s Rebate will be applied as a credit towards closing costs and/or prepaid (so you can bring less funds to closing). It will appear on your Closing Disclosure/Settlement Statement at closing as a “Realtor/Real Estate Agent Credit”. We will request that your rebate be applied AFTER the FULL amount of any Builder or Lender credits are applied. Occasionally, the combined total of Builder and Lender credits and our Michael Ruff Home Buyer’s Rebate will exceed you total closing costs and prepaid. In the event that this occurs, and your Michael Ruff Home Buyer’s Rebate is not able to be completely applied towards closing costs and/or prepaid, we can seek the following options from your Builder and Lender for any remaining balance we owe you:
• A reduction to the price of the home
• A credit applied towards options or upgrades
• Principal Curtailment (to lower the principal balance of the loan)
• Interest Rate Buy-Down (to lower the interest rate so your monthly payments will be lower)
• An increase in escrow deposits or homeowner’s insurance pre-payment
• A check paid outside of closing (Please note: an IRS 1099 form may be issued for any checks paid outside of closing)
• Or Any other method allowed by the Builder or Lender to issue you the full rebate amount
Cash Buyers Only: If you are only paying cash for your home and not getting a mortgage, your Michael Ruff Home Buyer’s Rebate will be a credit applied to the grand total due at closing. Because there is no Lender involved, there is no stipulation that the rebate must be applied towards closing costs and prepaid.
Agreement: The Buyer(s) agreed that Michael Ruff at Real Broker LLC will act as their exclusive brokerage/real estate agent and will rebate a portion of their commission according to the terms of this agreement.
Please Note: The Commission Refund will only be paid in the event that the Buyer actually closes on the home and Real Broker LLC is paid as their Realtor/Real Estate Agent by the Builder. It is required by Florida law that your commission refund / rebate from us be fully disclosed to all interested parties to the transaction.