Rebate & Commission Disclosure

Portfolio Home Realty believes buyers deserve a clear picture of how real estate commissions work and exactly how our cash-back rebate is calculated. This page explains the mechanics, the current rules, and the conditions that apply. It is provided for general information and is not legal or tax advice.

How the 1% cash back works

When we represent you as your buyer's agent, the compensation we earn comes from the sell side of the transaction. Here's the typical flow:

Your rebate equals 1% of the home's purchase price — not 1% of the commission. The figures above are a representative example; the exact percentages in any deal depend on what the seller side offers.

The 2025 commission rules, in plain English

Two changes reshaped how buyer-agent compensation works in California:

• NAR settlement (effective August 17, 2024). Buyer-agent compensation is no longer advertised in the MLS, and buyers now sign a written buyer-representation agreement before touring homes, spelling out how their agent is paid.
• California AB 2992 (effective January 1, 2025). Reinforces written buyer-broker agreements and transparency around how compensation is set and disclosed.
• The practical reality. Sellers are not required to pay the buyer's agent — but in most California transactions they still offer to cover some or all of it. When they do, that compensation is what funds your rebate.

Rebate terms & conditions

• Requested, not guaranteed. The rebate depends on the seller or listing brokerage agreeing to pay a buyer-agent commission. We always request it; where it is reduced or unavailable, the proportional adjustment below applies.
• 1% of the purchase price. The credit equals 1% of the final purchase price shown on your Closing Disclosure — not 1% of the commission amount.
• Proportional adjustment. If the compensation we collect is less than our standard amount, the rebate may be reduced proportionally. We confirm the exact dollar figure with you in writing before you submit an offer.
• Put in writing first. Rebate terms are documented in a written agreement before you make an offer — never a verbal promise.
• Lender disclosure & approval. The rebate is disclosed to your lender and appears on the Closing Disclosure. Some loan programs limit how a credit may be applied, so lender approval is required.
• Credited at closing. The rebate is applied at or after closing — commonly toward your closing costs — in accordance with lender and escrow rules.
• Not tax advice. The IRS generally treats a buyer rebate as a reduction in the cost basis of your home rather than taxable income, but we are not tax advisors. Please consult your CPA.

General commission disclosure

Real estate commissions are not set by law and are fully negotiable between the parties and their brokers. Nothing on this page is an offer of compensation to any broker or agent, nor a guarantee of any specific rebate amount. Actual amounts depend on the individual transaction and are governed by your signed buyer-representation and rebate agreements.

Frequently asked questions

Last updated: June 2026