Commission Disbursement Authorization
Closing Instructions for Reboot Realty™ agents.
What is a Commission Disbursement Authorization?
The CDA, or Commission Disbursement Authorization, is a document that is generated by the brokerage and sent to the escrow company, title company, attorney, or whoever is handling the closing and/or settlement of a transaction. It lists itemized amounts and gives instructions on how the commission should be disbursed. It is essentially a payment request to the closing company. Reboot Realty will generate a CDA and email it to you, the agent, approximately 2 weeks prior to the transaction closing date we have on file. Upon receipt of the commission disbursement authorization, it is important for the agent to review the data and amounts for any errors or needed changes.
Prior to Closing Day
- Review the Commission Disbursement Authorization to ensure that the information and amounts are correct. If they are not correct, STOP NOW and contact your broker or payment specialist right away so that a revised commission disbursement authorization can be issued.
- Send the CDA to the title company or other disbursing party. The CDA contains electronic funding details in case they do not have them already.
- Verify that they received the CDA and can accommodate our paperless workflow. It is the agent’s responsibility to make sure commission disbursement happens correctly. If they end up cutting a check, please do not accept it.
How to Get Paid
- Ensure your pre-closing transaction checklists are complete and approved. If you have missing required transaction items, we highly recommend that you take care of them before you close so that your your payment is not delayed.
- Upload the required closing docs after closing your transaction so they can be reviewed and approved.
- Finally, the company commission must be received electronically via wire or ACH.
When to Expect Payment
We will immediately initiate an electronic funds transfer of your commission into the bank account that we have on file once your transaction is approved for payment. Our goal is to get you paid as fast as possible, so we use a variety of technologies and banking institutions to do this. If your transaction is approved for payment prior to 12 p.m. eastern on Monday-Friday, then expect your money that same day. Otherwise, it’ll show up in your account sometime on the next business day.
Avoiding Payment Delays
- If we do not already have an established working relationship with the title company, then prior to closing day, you should verify that they indeed have our Commission Disbursement Authorization and will be accommodating our electronic disbursal instructions. If they missed it or ignored it (which some do), resend the CDA and make a point to request FREE electronic funds transfer (wire/ACH) for the Reboot Realty LLC commission payment. In most cases title companies happily do this and waive any associated EFT fees to earn and keep your business.
- Make sure that the commission payment is NOT sent via postal mail. This will greatly delay your payout.
- Upload your closing docs ASAP. Without these, your transaction will remain in a pending state and will not settle until it is approved for payment.