News Release

For Immediate Release - March 17, 2005 

Worldwide ERC News Release
Worldwide ERC® media contact:
Anita Brienza
+1 301 847 3772
Worldwide ERC® member contact:
Leigh Massey
+1 703 842 3429

New Worldwide ERC® Coalition Reference Clarifies Fee Splitting, Rebates, Other Incentives for U.S. and Its Territories 

Worldwide ERC® and the Association of Real Estate License Law Officials (ARELLO) have partnered their community outreach and research expertise to provide an in-depth resource -- Fee Splitting, Rebates and Other Incentives: Laws and Regulations in the United States and Its Territories. "The maze of laws and regulations that surround fee splitting, rebates and other incentive programs is a complicated puzzle that has long bewildered and frustrated real estate brokers who do affinity business or choose to either provide a gift, or rebate a portion of the commission to a buyer or seller in a real estate transaction in the United States and its territories," said Sandy Taraszki, executive director of the Worldwide ERC Coalition®. "We are pleased to shed light on this area for the thousands of practitioners who need this information."

Covering the 50 United States plus Puerto Rico, Washington D.C., and the Virgin Islands, Fee Splitting, Rebates and Other Incentives: Laws and Regulations in the United States and Its Territories is the first-ever collective reference that defines the applicable jurisdictions as either those that prohibit the payment of compensation to a principal; that likely permit the practice without restriction, or that allow for compensation to principals – either explicitly or by default – with conditions. A significant part of the report provides information professionals have been seeking in one reference for some time: a brief summary of each jurisdiction's position, which encompasses any comments supplied by the regulatory agency in the jurisdiction, as well as the supporting statutes and regulations.

ARELLO Executive Director Craig Cheatham notes, "The key element that differentiates jurisdictions on this issue is performance of an activity that requires a license. Very rarely do the statutes explicitly prohibit fee splitting with principals; however, these same statutes often expressly prohibit the sharing of fees with an unlicensed person. Consequently, the assessment in this publication is based on degrees of certainty about whether or not the practice is really prohibited, or was simply unintentionally prohibited by language that dictates ‘no sharing of fees with an unlicensed person.' "

Fee Splitting, Rebates and Other Incentives: Laws and Regulations in the United States and Its Territories can be ordered from the Worldwide ERC® Coalition: Center for Governmental Issues.

ARELLO is the Association of Real Estate License Law Officials, comprising the official governmental agencies and other organizations around the world that issue real estate licenses/registrations in addition to regulating real estate practice and enforcing real estate law. For more information, visit

Worldwide ERC® provides leadership, advocacy, education and networking to global workforce mobility professionals and stakeholders through specialized training, credentialing, meeting events and information exchange. Formed in 1964 and with offices in Washington D.C. and Brussels, Belgium, it is the membership association of choice for more than 13,000 corporate and government relocation managers, real estate companies, appraisers, and a range of service firms and individuals from industries that address relocation -related workforce issues. Worldwide ERC®'s programs and publications help relocation professionals continually increase their expertise in relocation issues, and allow corporations relocating employees (and the companies that provide services to them) to communicate more effectively and to conduct transfers more efficiently. To learn about Worldwide ERC®'s membership opportunities, products and services, call +1 703 842 3400 or visit