How to Complete the "Commission Summary" In Our Paperless System

Examples to make the broker demand process go smoothly

In our Paperless Transaction Management System, you will need to complete the Commission Summary, this box is where you need to provide all aspects of your commission information regarding the transaction.

If you don't enter it when you create the file, you need to go back in and edit the file: First click on the file name to open that transaction then click Edit Transaction on the left panel, scroll down the Commission Summary box, this is just above where you assign agents to the transaction, and then, for example, enter something like this:

EXAMPLES:

• "3%"

• "3% less 1% of Sale price contribution to buyer closing costs"

• "3% less $350 Transaction Coordinator Fee Payable to: Jane Doe

• "3% less 25% of commission to Referral: John Smith, (In the Contacts Section, please put the Role as Referral, ABC Company, 123 Any St, Any Town, WA 99999 and the referral agents name, phone and email"

  • • Remember we must have a W-9 for the Firm that we are sending the referral fee to as well as the Firm's real estate license.

• "3% less $465 to Fidelity National Home Warranty"

• "$2,000 Flat Fee"

• "5.5% total – Dual Agency 3% List Side /2.5% Sale Side"

• "3% Commission based on $104,500 (sale price less $3,000 seller concessions) **i.e. if Sale Price is $107,500 and sellers are contributing $3,000 towards closing costs and prepaids)**"

• "3% Commission based on $104,500 (sale price less $5,000 builder upgrades) **i.e. the Sale Price is $109,500 (and should be noted in your transaction as such)

• "3% less $2,000 Commission Advance payable to: Commission Advance Comp. 123 Any St, Corporate, WA 99999

*

When two or more Professional Realty agents, Commission Splits example:

EXAMPLES:

• "3% Listing Agent Joyce; 2.5% Selling Agent Jane Doe less $500 buyer closing cost credit"

• "3% John Smith 40% Jane Doe 40% Mark Anthony 20% **(teams or multiple agents same side of the transaction)**"

• We will split the transaction fees the same as the commission splits unless you specifically state something like "John Smith pays all transaction fees"

RECEIVING REFERRAL COMMISSIONS

• If you are receiving a referral commission, as soon as you have a referral agreement, create a referral file, add the referral checklist, upload your referral agreement and enter complete and accurate commission information.

• If you know when the transaction is going to close and who escrow is, you can enter escrow information and put the closing date in the transaction so we are prompted to send a broker demand for your referral.

• If you haven't done the above step, when your check is received to our office, we will look up your file and process the check accordingly.

PAYING REFERRAL COMMISSIONS

• Please make sure you have added detailed information regarding the referral that needs to be paid, example:

  • • • "3% less 25% of commission to Referral: John Smith, (In the Contacts Section, please put the Role as Referral, ABC Company, 123 Any St, Any Town, WA 99999 and the referral agents name, phone and email" Remember we must have a W-9 for the Firm that we are sending the referral fee to as well as the Firm's real estate license.

LEASE COMMISSIONS

Lease commissions can vary greatly, in general, this is the minimum that we need in the Commission Summary:

• The gross total commission

• The commission broke down by sides (who represents the owner/landlord and who represents the tenant). And any splits between PRS agents (if more than 0ne)

• Full Name, Phone Number, Mailing Address and email address of who we need to invoice for the commission (also enter in the Contact Section)

• Full Name, Company Name, Mailing Address, Phone number of commissions to be paid outside of Professional Realty Services (also enter in the Contact Section)

• Any breakdowns such as: 50% on Signing, 50% at Move In.

If there is nothing complicated, just put the % or flat $ amount, i.e. 3% or if it is your listing you can enter as an example: 6% total, 3% to Listing Agent. Or $2,000 Flat Fee to listing agent, $500 flat fee to Tenant's agent.

Please do not enter just a dollar amount unless you are doing the transaction for a flat fee. Commissions often change due to sale price adjustments due to low appraisal or inspection response items, to save re-entering commission data, please use a %-age as shown on the listing and/or MLS.

Thank you so much for your help in keeping transactions flowing quickly and smoothly!

*All Commissions are negotiable, the percentage represented here is for example purposes only*

TO COMPLY WITH STATE LAW AND PROFESSIONAL REALTY SERVICES COMPANY POLICY,

WE *DO NOT* USE FORM 40'S OR COMMISSION DEMANDS PROVIDED BY ESCROW

In order for you to get paid at closing, the Broker Demand MUST include specific written permission from the Corporate Office with instructions to pay your portion of the commission directly to you. If you send a Form 40 or Commission Demand that was provided by the Escrow, the Escrow agent WILL ignore our Broker Demand 99% of the time.

HOW TO GET PAID ON TIME

- Please make sure ALL checklist items are completed at least 7 days before closing.

- Please DO NOT give Escrow the commission amounts.

- Please DO NOT send Form 40's or Commission Demands provided by Escrow.

- If Escrow asks you to complete their Commission Disbursement form OR if they ask you how much the commission is, please tell them this: "Broker Demands ONLY come from the Corporate Office will send you a Broker Demand 5 days before closing".