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I believe your lender is referring to a "Arms Length Transaction."

An arms length transaction is... "any transaction in which the two parties are unconnected and have no overt common interests. Such a transaction most often reflects the true market value of a property." --Google

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Top Sales Expert ~ Sales Training ~ Mobile Homes For Sale

Thanks,

But is it O.K. for another agent to refer the commission back to me?

An "Arms Length Transaction" typically referrs to a "Seller" selling a property to a "Buyer" who has some form of common interest [spouse, child, etc.].

If you "are" the seller then this is a typical "condition" from a lender. If you "are not" the seller then this isn't typical. This doesn't mean however that your lender can't make it a condition of the loan.

If you "are not" the Seller and you hire a "Buyer's Agent" to represent you then "Yes" the Buyer's Agent can rebate money to the "Buyer."

If you "are" the Seller then it would not be appropriate for the "Seller's Agent" to rebate money to the "Buyer".

Does that make sense?

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Top Sales Expert ~ Sales Training ~ Mobile Homes For Sale

i think it depends on what state you are in. in my state, i can sell my own house and purchase my own house and represent myself. so you really need to look at what your state laws are.

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Kassie Weisgable
Realtor
Fredericksburg, VA Homes