What must a broker do when rebating commission to a buyer at closing?

When a broker is rebating commission to a buyer at closing, it is essential for the broker to disclose the rebate to all parties involved, particularly the seller, and obtain their approval. This is rooted in the ethical standards and legal duties owed to all parties in a real estate transaction. The disclosure not only maintains transparency but also helps prevent any allegations of fraud or misunderstandings regarding the nature of the commission and its distribution.

Obtaining the seller's approval is crucial as it directly affects their financial interests in the transaction. Without this approval and proper disclosure, the broker could face regulatory repercussions or damage their professional reputation. Ensuring that all parties agree to the terms of the rebate solidifies trust and reinforces a fair transactional environment, which is vital in real estate dealings.

The other options do not adequately address the need for consent and full disclosure to all parties, which is the primary responsibility of the broker in this scenario.