If an agent provides something of value in exchange for business, what is this practice commonly referred to?

Rebating refers to the practice where an agent offers something of value—such as gifts, discounts, or other incentives—in exchange for business or referrals. This practice is significant in various industries, including real estate, as it can create a competitive edge by attracting clients. However, it's important to note that rebating can be subject to legal regulations; for instance, certain jurisdictions may have strict rules regarding the provision of incentives to ensure that they do not lead to unethical behavior or unfair competition.

In the context of the question, recognizing rebating as the correct answer helps understand the implications of providing value in business dealings. It illustrates the fine line between healthy business practices and potential violations of professional standards or laws, emphasizing the importance of understanding local regulations regarding incentives in the real estate sector.