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Real Estate Commission

Consumer Information

Alaska Law Prohibits Rebates on Commissions

Under AS 08.88.401(d), a person licensed under AS 08.88 may not knowingly pay any part of a fee, commission, or other compensation received by the licensee in buying and selling real estate to a person who is not licensed under AS 08.88. This statute prevents the sharing of any portion of the licensee’s fee or commission on a real estate transaction with the licensee’s principal , or with any other unlicensed person. This prohibition also includes offers from organizations to rebate a portion of a licensee’s commission on the sale of a member’s home if the sale is handled through the organization’s program.

AS 08.88.401(e) provides three exceptions to this ban: 1) payments by a licensee to a person licensed to practice real estate in another state if that person has assisted the licensee in the performance of an act which requires an Alaska license; 2) payments from a licensee to a principal as part of a resolution of a dispute regarding the terms of the transaction or the property transferred; and 3) contributions from a licensee to a charitable organization.

Licensees who are considering offering rebates on commissions are encouraged to consult an attorney to ensure that they are complying with Alaska law.

AS 08.88.401 Prohibited Conduct; penalties