Where a buyer rebate shows up on a Florida closing statement
If you are financing, your rebate in Florida will not arrive as a check. It shows up as a line on your closing documents, and it lowers the cash you bring to closing.
What the line looks like
On the Closing Disclosure, look in the section for adjustments and other credits. You should see a credit from the buyer's brokerage, labelled something like "rebate from buyer's broker" or "brokerage credit". The settlement statement from the title company will show the same credit.
Who has to approve it
Your lender. Lenders review every credit from a party with an interest in the sale, which includes real estate agents. Tell your loan officer at pre-approval that you expect a rebate so it is built into the file, not discovered in the last week.
The two common caps
- The credit usually cannot exceed your closing costs and prepaid items, such as taxes and insurance escrow.
- Total credits from interested parties, including any seller concessions, are capped as a percentage of the price depending on the loan type and your down payment.
If the rebate is too large
Your agent can ask the seller to reduce the price by the excess instead. The money still ends up on your side of the table, just in a different line.
Paying cash
With no lender, the title company can apply the rebate against your funds due or issue it as a check at closing. It still appears on the settlement statement.