A commission advance is a financial service whereby an agent and broker sell a portion of a pending commission for a fee. In exchange, funds are advanced before closing. It’s simply access to an earned commission prior to an estimated settlement date.
From top producers to agents just starting out, cash flow ups and downs are common to almost everyone selling real estate, mostly due to the timing of when sales close. eCommission solves cash flow gaps by giving you access to your real estate commissions on your schedule.
The cost depends on the amount requested and the length of time until closing. Using an example as a new customer requesting $3,000 on a sale closing in 40 days, the cost would be approximately $400. Check out our cost estimator or, talk with a customer service rep at 1-877-882-4368 to find out the details specific to your needs.
Once your agreement is signed and your transaction confirmed with the settlement company, funds are wired to you within one hour, during normal business days. If funds are being sent to a credit union, transfers can take up to one day to complete.
Start by setting up your free account. You will need to know the sale details of the property for which you would like to advance the commission, including contact information for the settlement company closing the sale. Once your application is completed, the eCommission agreement is instantly presented to you online via Docusign and then sent to your broker for electronic signature.
When the signed documents are sent back to eCommission, we will review your paperwork and notify you when your advance is approved. If we cannot approve your request or, if there is missing information, an account manager will personally contact you.
Repayment of the advance happens automatically when your sale closes. The settlement company receives a commission disbursement authorization signed by your Broker instructing them to send the portion of the commission that has been sold directly to eCommission at close of escrow.
A commission advance is a factoring transaction whereby a broker and agent sell a portion of a pending commission for a fee. In exchange, funds are advanced before closing. It’s simply access to an earned commission prior to an estimated settlement date.
As broker, all commissions earned by your agents belong to your company. Agents cannot advance commissions without your consent. The agreement you sign authorizes the sale and assignment of the agent’s portion of the commission on a particular sale to eCommission, after any split or balance owing to your Company.
No. In the unlikely event we advance a commission to one of your agents on a sale that falls through, the agent is asked to replace it using future earned commissions. As broker, your only responsibility is to direct any future commissions earned by the agent to eCommission in the event the advance is not repaid as agreed. If no future commissions are ever earned or the agent leaves your Company for example, there is still never any liability on your part to repay their advance.
At the time an agent applies for an eCommission, the broker is asked to sign a commission disbursement authorization to the settlement company. This document is your instruction to send the portion of the agent’s commission that has been advanced, directly to eCommission at close of escrow. Alternatively, the option exists to have your Company direct repayment of the advance to eCommission after closing.
eCommission provides commission advances up to 120 days ahead of the scheduled closing date. An agent can request up to 100% of their net earned commission after any split with their broker, to a maximum of $15,000 per transaction. These advance limits can be lowered at your discretion, just give us a call to discuss.
Better control of cash flow allows agents to manage their professional lives more efficiently. Experience indicates that agents typically use eCommission 2 to 3 times per year, whenever business expenses surpass monthly cash flow. With eCommission as your partner, you can help your agents control the timing of when they get paid, keeping them focused and engaged, resulting in more listings, more sales and higher levels of productivity.