The following is a a statement from NYS Association of Realtors affirming the legality of incentive payments to customers:

It is permissible to offer an incentive to attract clients and/or customers pursuant to an opinion issued by the New York State Department of State. Real Property Law § 442 prohibits a real estate broker from offering to pay any part of the broker's commission to any party to a real estate transaction if the purpose of the payment is to compensate an unlicensed party for providing services that would otherwise require a real estate broker's license. Generally speaking, Section 442 was intended to discourage unlicensed activity. Section 442 does not, however, prohibit a real estate broker from offering cash, services, or products to attract new clients and customers. The Department of State has found no violation of Section 442 with regard to promotional offers in which a real estate broker offered the following products and services to attract new clients and customers: free airline tickets; free use of vacation rental property; free termite and mechanical inspection; discounts from local businesses; free home security system; moving expenses; free insurance on major appliances; gift certificates; and cash. Any offer by a broker is clearly promotional in nature and is designed to attract new clients, and, accordingly, the offer is permissible.


The following is an excerpt from the Federal National Mortgage Association Single Family Selling Guide which specifically allows contributions of closing costs by real estate agents and brokers:

X, 602: Contributions by Interested Parties (06/30/02)
 
Some closing costs and prepaid settlement costs generally are paid by the property purchaser, while other costs are the responsibility of the property seller. Other costs may be paid by either the property purchaser or the property seller. When any costs that are normally paid by the property purchaser are paid (indirectly or directly) by someone else, they are considered to be contributions. All contributions may be paid by any interested party to the property sale transaction, although we may impose limitations on the amount of the contributions.

An interested party is anyone (other than the property purchaser) who has a financial interest in, or can influence the terms and the sale or transfer of, the subject property. This includes the property seller, the builder/developer (or an affiliate who may benefit from the sale of the property), and the real estate agent or broker.