A commission rebate’s place on the Closing Disclosure depends on whether it pays a specific closing charge. A general rebate appears as a credit identifying who provides it; a credit for a particular charge appears beside that charge in “Paid by Others.” CFPB’s official commentary makes that distinction. Before counting either toward your closing budget, ask your lender to confirm the amount and use it will accept.

For U.S. home purchases using the standard Closing Disclosure, state permission to offer a rebate, financing approval and settlement accounting require separate checks.

1. Put the brokerage’s promise and conditions in writing

Gather your buyer representation agreement, any rebate addendum and the purchase contract. Ask the brokerage to make these details explicit:

• Who provides the rebate and who receives it.
• The dollar amount, or the formula and commission amount used to calculate it.
• Whether it is a general credit or pays identified charges.
• When it will be delivered and what happens if financing limits prevent its full use.

A hypothetical promise of “20% of our commission” needs a denominator: 20% of a $10,000 commission is $2,000, not 20% of the purchase price. Request the calculation again if the commission changes. Our coverage of agent compensation and fees provides broader context for reviewing the agreement.

Confirm the property state’s licensing requirements with the brokerage. As a Texas-specific example, TREC’s May 20, 2020 guidance calls for sponsoring-broker approval before sales agents offer rebates, lender consent for buyer cash rebates and disclosure at closing. It also says license holders may not pay rebates outside the transaction. Read the Texas guidance.

If the agreement or state-law permission is disputed, consult a real estate attorney in that state.

2. Obtain lender review before the closing figures are finalized

Send the written arrangement to your loan officer and settlement agent as soon as it is agreed. Include amendments, the expected amount, its source, intended use and payment timing. Identify seller credits and other promised incentives, too. Ask the loan officer to obtain the lender’s underwriting decision; the brokerage’s promise alone does not establish what your financing allows.

Fannie Mae treats agent rebates as interested-party contributions and restricts their amount and use. They may cover eligible closing costs and prepaids, but cannot fund down payments, reserves or minimum borrower contributions. Contribution limits depend on occupancy and loan-to-value ratios. Amounts above those limits or actual closing costs become sales concessions. See the September 2, 2026 Selling Guide, section B3-4.1-02.

Request a written response identifying:

• The accepted rebate amount and eligible expenses.
• Other credits counted with it and the remaining contribution allowance.
• Your required funds after the rebate.
• How any unused amount will be handled.

For Freddie Mac, FHA, VA, USDA or a lender’s own loan program, request that program’s applicable rule and any additional lender restrictions. Do not apply Fannie Mae’s treatment to another program without confirmation.

Also distinguish a rebate from payment of the brokerage’s fee. Fannie Mae’s April 15, 2024 notice says seller or seller-agent payment of buyer-agent commissions under local common and customary practices need not count toward contribution limits. That qualification concerns payment of the commission; it does not establish an exemption for money rebated to the buyer.

3. Match the commission rebate to its Closing Disclosure location

On the standard H-25(A) model form applicable to this guide, page 2 contains closing-cost details and page 3 contains transaction summaries. Check the approved arrangement against the preparer’s entries:

These are the two treatments described in comment 38(j)(2)(vi)-1.

Hypothetical: A brokerage promises $2,500, with $600 specifically allocated to an appraisal and $1,900 as a general credit. Assuming the lender accepts that structure, the two entries should total $2,500. Recording $600 beside the appraisal and the full $2,500 as a general credit would overstate the benefit by $600.

Ask the preparer to trace the approved amount through the form. Verify the brokerage’s identity, each allocated charge and the effect on your cash to close.

4. Resolve any proposed payment after closing

A promise to send a check after closing still needs review. Fannie Mae treats rebates not credited toward the transaction—including later payments—as sales concessions, reducing the price used in underwriting. Loans with undisclosed contributions are ineligible for purchase by Fannie Mae. See the Selling Guide’s rules on sales concessions and undisclosed contributions.

Before accepting a proposed separate payment, ask the lender and settlement agent how it will be documented and whether it changes loan eligibility. Confirm state permission as well. “We will send it afterward” does not resolve the financing and disclosure requirements for an unused rebate.

5. Reconcile the final documents before signing

For a covered purchase loan, you generally must receive the Closing Disclosure at least three business days before becoming contractually obligated on the loan. Correcting a rebate does not automatically restart that period. The rule requires a new waiting period when the APR becomes inaccurate under Regulation Z, the loan product changes or a prepayment penalty is added. CFPB disclosure timing rules.

Use the review period to compare the brokerage agreement, the lender’s decision and the latest disclosure:

• Does the final rebate equal the approved amount?
• Does every difference from the original promise have a written explanation?
• Are specific charges and general credits counted only once?
• Do the disbursement instructions match the accepted payment plan?
• Have you confirmed the final amount you must bring?

Send discrepancies to the loan officer, brokerage and settlement agent together, and request corrected documents where needed. Keep the final agreement, lender correspondence, disclosure and payment record with your purchase documents.

As you prepare for closing, use a concrete completion test: you should be able to identify who provides the rebate, how much the lender accepted, where it appears and how it affects your required funds.