I have a question about a service offered by eFund Realty at http://eFundRealty.com. They rebate 25% of the buyer agent's commission back to the buyer. That part I understand. However, they charge the agent 30% and are keeping the other 5%, and in fact, paying out a part of that to their affiliates.

Under what loophole are they allowed to receive part of a real estate agent's commission and pay some of that to third party referrers?

I would appreciate any replies.

- Joe Kamenar

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In Minnesota, if eFund is the originating BROKER (they have to be licensed) they are permitted to receive a referral fee (30% in this case). A principal in the transaction (agent, buyer or seller) can receive compensation if on the HUD. So, I don't really see a problem with it.

Lending Tree does rebates to buyers too.

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Aaron

Minneapolis Real Estate | Twin Cities Real Estate | Edina Realty Agent