KANSAS REAL ESTATE COMMISSION'S
GUIDELINES FOR PERMISSIBLE GIFTS AND GRATUITIES
Effective July 1, 2004, the prohibition on a licensee offering or
giving gifts and gratuities was repealed. (See 2004 SB 404, §
3). However, other laws continue in effect that prohibit certain types
of gifts and gratuities from being offered. Real estate licensees
should be cognizant of the following statutes:
K.S.A. 58-3062(a)(1)-prohibits advertising that is misleading or
inaccurate in any material particular.
K.S.A. 58-3062(a)(4)-prohibits rebates to principals to the transaction.
2004 K.S.A. 58-3062(a)(11)-clarifies that payment of compensation
to unlicensed persons for performing activities that require a real
estate license is prohibited.
K.S.A. 58-3062(a)(12)-prohibits a licensee from failing to include
in the contract the exact agreement of the parties.
K.S.A. 58-3062(a)(14)-prohibits a licensee from committing fraud
or a substantial misrepresentation.
K.S.A. 58-3062(a)(15)-prohibits a licensee from providing false writings
to a lender or any other interested party.
The following items are examples of permissible gifts:
1. Use of a moving van
2. Contribution of monies to charity
3. Coupons for appliances, trips, meals, sporting events, free or
reduced lodging, reduced commission, payment of seller's closing costs,
payments of buyer's closing costs other than earnest money deposit,
loan origination fee, or any other lender fees
4. Payment for a survey, homeowners warranty policy, inspections,
repairs, title search, taxes, insurance, and filing fees
5. Reduction of commission that would be due from the client or customer
The following items are examples of gifts that are not permitted:
1. Payment of money for the buyer's earnest money deposit, down payment,
loan origination fees or any other fee or cost associated with the
loan
2. Payment of cash to a principal in the transaction unless the principal
has a real estate license and the gift is disclosed in the sales contract
3. Rebate money to a principal in the transaction
4. Payment of compensation to an unlicensed person, ie. payment for
referrals
Approved 8/12/04
