Which statement about rebates is incorrect?

The statement that brokers are prohibited from rebating portions of their commission is incorrect because it misrepresents the regulations around rebates in real estate transactions. In fact, brokers may rebate a portion of their commission to clients, but it is subject to certain conditions and must be properly disclosed to all parties involved in the transaction.

Under specific circumstances and with adherence to disclosure requirements, the practice of rebating commissions can be legal and is often used as an incentive to attract clients. Professional standards and regulations encourage transparency to avoid conflicts of interest, making it clear that all parties are aware of any financial arrangements.

The other statements highlight facts about rebates that align with industry regulations. For example, license holders can indeed accept rebates if they are disclosed, and there are situations where brokers can legally rebate portions of their commission. Additionally, title insurance companies have strict rules that prevent them from paying rebates to license holders, which helps maintain the integrity of the financial transaction.