Both federal law and Alabama state law allow real estate licensees to give prizes, money, gifts, and other valuable consideration (I will call "incentives") to parties to induce them to enter into real estate transactions. If this sounds simple, do not be deceived. Alabama state law does not allow a real estate licensee to give or receive a rebate in a real estate transaction. Federal law does not allow a real estate licensee to give or receive a kickback or unearned fee in connection with certain real estate transactions. As we will see, there are other hidden problems with the giving of such incentives. Prior to legislation in the 1992 Regular Session of the legislature, Section 34-27-36(a)(24) Code of Alabama 1975, as amended, (The Code) prohibited real estate licensees from giving prizes, money, free gifts, or any valuable consideration to induce customers to purchase, rent, lease, or list property. Although this provision was not deleted until 1992 by the Alabama legislature, it actually had not been enforced since a federal court. enjoined its enforcement in 1986 (CAUTION, an incentive