Buyer Guides — Last updated August 2026
Half the buyer-agent commission, up to 1.5% of the purchase price, returned at closing — how it works and what to confirm first.
In New York, a buyer’s agent can legally return part of their commission to the buyer at closing. BRN returns half of the buyer-side commission it receives, capped at 1.5% of the purchase price — on a $3 million apartment, that ceiling is $45,000. The actual amount depends on the commission available for that property, and BRN confirms the expected figure early in the process.
Buyers work directly with senior BRN partners throughout the search, negotiation, diligence and closing. What follows is how the return is calculated, how it is handled at closing, and what to confirm about any brokerage that offers one.
What Is a NYC Buyer Commission Rebate?
A buyer commission rebate is part of the commission earned by the buyer’s brokerage that is returned to the buyer at closing. It may also be called a buyer-agent rebate, commission return, commission refund or broker credit.
Typically, the seller or listing brokerage provides the compensation paid to the buyer’s broker. The amount is negotiable and can vary by property.
When BRN represents the buyer and receives that commission, BRN returns half of it to the buyer, capped at 1.5% of the purchase price.
For example:
If BRN receives a 3% commission, the buyer receives 1.5% of the purchase price back.
If BRN receives a 2.5% commission, the buyer receives 1.25% back.
If BRN receives a 2% commission, the buyer receives 1% back.
BRN handles the calculation and coordinates the return with the buyer’s attorney, lender and closing professionals. The buyer receives the benefit without taking on the broker’s work.
Are Commission Rebates Legal in New York?
Yes. New York Real Property Law §442 expressly permits a licensed real estate broker to offer part of its commission to a buyer, as long as the buyer is not being paid to perform work that requires a real estate license.
The New York Department of State also confirms that brokers may offer cash or other incentives to consumers.
New York does not set a standard commission rate. Broker compensation is negotiable, which is why the buyer agreement should clearly explain the services, compensation and commission-return formula.
How BRN Calculates Your Commission Return
BRN returns the lesser of:
Half of the buyer-agent commission BRN actually receives.
1.5% of the purchase price.
Purchase price | Commission received by BRN | Illustrative BRN return |
|---|---|---|
$2,000,000 | 3.0% or $60,000 | $30,000 or 1.5% of the purchase price |
$3,000,000 | 2.5% or $75,000 | $37,500 or 1.25% of the purchase price |
$5,000,000 | 2.0% or $100,000 | $50,000 or 1.0% of the purchase price |
These examples assume that the purchase closes and BRN receives the stated commission. If the purchase does not close or BRN receives no commission, there is no commission to return.
BRN confirms the anticipated amount once the compensation information for the property is available.
Estimate What BRN Could Return to You
Enter your expected purchase price to see the maximum amount BRN could return to you at closing.
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BRN returns half of the buyer-agent commission it receives, up to 1.5% of the purchase price. We confirm the exact transaction-specific amount early in the process.
What Changed for Buyer-Agent Compensation in 2024?
Since August 17, 2024, offers of buyer-agent compensation are no longer shown in the MLS. Sellers and listing brokerages may still offer to compensate a buyer’s broker, but that information must be communicated outside the MLS.
Buyers working with an MLS participant generally must also sign a written buyer agreement before touring a home. The agreement should clearly explain:
What services the broker will provide.
How much the broker will be paid or how the amount will be calculated.
That broker compensation is negotiable and not set by law.
Whether the buyer could owe anything if the available seller-paid compensation is lower than the amount in the agreement.
The National Association of Realtors’ consumer guide explains these changes in more detail.
BRN discusses compensation before it becomes a surprise. For each property, BRN explains the compensation available, whether it affects the offer and what return the buyer can expect.
How the Commission Return Is Handled at Closing
BRN tells the buyer’s attorney, lender and closing professionals about the expected return so it can be properly documented and delivered.
For many financed purchases, the return is shown as a credit on the Closing Disclosure. The Consumer Financial Protection Bureau’s Closing Disclosure guidance explains how an agent commission rebate should be identified.
A commission return is different from a seller concession or a price reduction:
Commission return: Comes from the buyer’s brokerage.
Seller concession: Comes from the seller and may help cover permitted buyer expenses.
Price reduction: Lowers the property’s contract price.
These options can affect the buyer’s financing and cash needed at closing differently. BRN coordinates with the transaction team so the return is handled correctly.
For a broader estimate of the expenses involved in a purchase, read BRN’s guide to NYC buyer closing costs.
Are Buyer Commission Rebates Taxable?
Generally, a buyer commission rebate is not treated as taxable income. It is usually treated as a reduction in the home’s purchase price.
In an IRS private letter ruling, the IRS concluded that a comparable buyer-agent rebate generally was not included in the buyer’s gross income because it represented a purchase-price adjustment.
That ruling applied only to the taxpayer who requested it and cannot be used as binding precedent. A purchase-price adjustment may also affect the buyer’s tax basis in the property.
Buyers should keep their buyer agreement and closing records and confirm the treatment with their own tax adviser. BRN does not provide individual tax advice.
Full-Service Buyer Representation With Better Economics
BRN combines a meaningful commission return with senior, full-service buyer representation. Buyers are not expected to perform the broker’s work in exchange for the return.
BRN clients work directly with senior partners on:
Search strategy and property selection.
Property, building and comparable-sales analysis.
Offer strategy and negotiation.
Inspection, attorney diligence and financing coordination.
Co-op, condo and board-package processes where applicable.
Contract-to-closing management.
BRN represents buyers. We do not pursue the seller’s listing while advising the buyer what the property is worth. That buyer-only focus supports candid advice and negotiation throughout the purchase.
See how BRN represents New York City buyers.
What Should You Confirm Before Choosing a Buyer Brokerage?
Ask four straightforward questions:
Is the return formula clear and in writing? You should know exactly how the return will be calculated and when it will be delivered.
Who will personally represent you? Confirm who will analyze properties, develop the offer strategy and negotiate the purchase.
What services continue after an accepted offer? Representation should continue through diligence, appraisal, financing, co-op or condo review and closing.
When will the expected return be confirmed? The brokerage should provide a property-specific estimate before closing.
BRN answers these questions at the beginning of the relationship and revisits the economics for every property under consideration.
Frequently Asked Questions
Is there a standard buyer-agent commission in NYC?
No. New York law does not set a commission rate. Compensation is negotiable and can vary by agreement and property.
Can BRN’s commission return reduce the cash needed at closing?
Possibly. The answer depends on the loan and the lender’s requirements. Tell the lender about the expected return early and do not assume it can satisfy a required minimum contribution.
Does BRN’s model apply to co-ops, condos and houses?
Yes. BRN’s commission-return model applies to eligible purchases of co-ops, condos and houses in the markets BRN serves. The amount returned depends on the buyer-agent commission BRN receives for the individual property.
What if a seller offers no buyer-agent compensation?
BRN reviews the buyer agreement and the available options with the buyer. Buyer-agent compensation may be requested from the seller as part of the offer or addressed through another permitted arrangement. BRN explains the implications before the buyer proceeds.
Considering a Purchase in New York City?
BRN combines senior, full-service buyer representation with a meaningful commission return. We return half of the buyer-agent commission we receive, capped at 1.5% of the purchase price, explain the expected amount early and coordinate the return at closing.
A BRN partner can give you a candid view of the market, explain how BRN would approach your purchase and estimate what BRN could return to you.
This article provides general information and does not constitute legal, tax, accounting, lending or investment advice. Commission arrangements, financing requirements and tax treatment vary by transaction and individual circumstances. Buyers should review their agreements and obtain advice from the appropriate qualified professionals.
