The High Road: Some brokers take kickbacks

First, the disclaimer: I have no direct knowledge of the particularly abhorrent practice in which some brokers take kickbacks.  Nor do I know how widespread it is.

But I recently heard that one way some brokers add to their income is by accepting money from vendors that they choose for their clients.

Cited as an example were furniture rental companies that brokers use to stage a property going on the market at the seller’s expense.  (Brokers do occasionally absorb the cost themselves.)

The rental companies supposedly kick back a portion of the fee in exchange for the broker’s recommendation.

In the event that a broker informs the seller of the arrangement, of course I don’t see anything wrong.  But I think a broker who secretly pockets extra cash in any circumstance related to his work on behalf of a client is reprehensible.

Subscribe by Email

Malcolm Carter
Licensed Associate Real Estate Broker
Senior Vice President
Charles Rutenberg Realty
127 E. 56th Street
New York, NY 10022

M: 347-886-0248
F: 347-438-3201

Malcolm@ServiceYouCanTrust.com
Web site

Advertisements

2 thoughts on “The High Road: Some brokers take kickbacks

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s