Commission Advances:
A commission advance is a financial service that is offered by a third-party company that will advance a pending commission for a fee when you have a mutually acceptable transaction under contract. In exchange for the fee, funds are advanced to you before closing. The funds that are advanced is a loan and it is tied to a specific transaction. Should that transaction not close for any reason, the loan is still required to be paid back to the third-party company.
Real cannot and doesn’t make any representations about any commission advance third-party company.
How are commission advances repaid?
Typically, the commission advance will be repaid when the transaction closes. However, if the closing is more than 27 days out, the repayment will populate on all subsequent transactions and be paid out of the first transaction that closes and each transaction after that until the full loan has been repaid.
Remember, all commission advances come with a fee and Real will pay whatever the total amount is from your commission advance to the third-party company that advanced the commission at closing.
If your transaction does not close for any reason, you will still be required to pay the advance back and it will come out of the first subsequent transaction that closes.
If you have any questions about the Commission Advance policy, need a recommendation for a 3rd party company that we work with, or need signoff by the brokerage on a Commission Advance Agreement, please reach out to: