What is an example of a rebate in real estate transactions?

In real estate transactions, a rebate typically refers to a return of a portion of the commission earned. This could be seen when an agent or brokerage offers to give back a certain percentage of their commission to the buyer or seller. This practice is often used as a way to incentivize buyers or sellers, making the deal more attractive and potentially reducing overall costs for a client.

The other options focus on different aspects of compensation and incentives in real estate but do not accurately define a rebate. A commission split refers to the division of commission between agents; a bonus incentive is usually a reward for achieving certain sales targets; and a discount on closing costs is a reduction of fees associated with the closing process, but not a direct return of commission. These concepts differ from the straightforward notion of a rebate, which clearly involves the return or reduction in commission specifically.