The Butler Rebate is a rebate of all or a portion of a title agent’s share of title insurance premiums. It can only be given to the party charged for the title insurance premium upon which the rebate is based.
A Butler Rebate should be separately disclosed; preferably in Section H (“Other”) on page two, but it could also be disclosed on page three in the Summaries of Transactions tables. In Section H the amount of the rebate is disclosed as a negative number placed in the column of the party receiving the credit. The description can read “Butler rebate from (title agent/agency).”
When disclosed on page three, rebates to borrowers will be disclosed as a positive number on an available blank line in Section L (Paid Already by or on Behalf of Borrower at Closing) under “Other Credits” (“Butler rebate from title agent/agency”). Rebates to sellers will be similarly disclosed on a blank line in Section M (Due to Seller at Closing) above “Adjustments for Items Paid by Seller in Advance.”