Legal FAQs for REALTORS® — Landlord-Tenant Issues
Discount for Early Payment

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Legal disclaimer

I'm a property manager. A tenant called me complaining that his roof was leaking. I checked with the owner and the owner gave the go-ahead for me to hire someone to fix the roof. The contractor fixed the roof and gave me a bill. The terms of the bill stated that if I pay the bill in full within two weeks, I would get a discount. If I pay the bill within two weeks, but the owner can't pay me until after two weeks, can I get a discount for paying early, but then charge the owner the regular price, keeping the difference for myself? (updated Aug. 21, 2013)

You may do this only with the informed consent of your client. TRELA Section 1101.652(b)(13) provides that a licensee's license may be suspended or revoked if the licensee accepts, receives, or charges an undisclosed commission, rebate, or direct profit on expenditures made for a principal. Also, Article 6 of the Code of Ethics prohibits REALTORS® from accepting any commission, rebate, or profit on expenditures made for their principal without the principal's knowledge and consent.

Legal Disclaimer: The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on Any legal or other information found here, on, or at other sites to which we link, should be verified before it is relied upon.

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