Canada Commission Advance Policy 

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 an agent has a mutually acceptable transaction under contract. In exchange for the fee, funds are advanced to the agent before closing. The funds that are advanced are a loan and are tied to the specific transaction. Should the transaction not close for any reason, the loan is still required to be paid back to the third-party company. 

Real cannot and does not make any representations about any third-party commission advance company. Real must sign to acknowledge the Advance terms between the agent and the third party advance company and repay the funds advanced upon closing of the transaction on the agent’s behalf.

Real shall only approve Commission Advances through third-parties where the agent assumes the binding authority, and the associated debt unequivocally and irrevocably becomes the agent's exclusive responsibility, persisting even in the event of termination. Real expressly disallows the approval of advance requests originating from Commission Advance entities that encumber the debt to the brokerage, including but not limited to AREA.

Conditions for Real approval of a Commission Advance: 

• Transaction must be firm
• Transaction must be Broker Compliant
• A maximum of 70% of agents portion of the commission may be requested
• Minimum Commission Advance amount is $1500
• Agent must have confirmed Commission Calculation and Trade Record Sheet
• Anticipated closing date of the transaction must be at least 7 days in the future
• Agent must be in good standing with Real with no fees more than 30 days in arrears (Brokerage fees, Transaction fees, Board fees or any other fee invoiced by Real)
• Agent is exclusively responsible for repayment of the debt in the event of termination 
• Other requirements as may be determined by Real in its discretion

Commission Advance Process:

• Agent completes their preferred 3rd party advance company application
• Agent emails completed advance application before 11am ET for approval to CADcommissionadvances@therealbrokerage.com 
• Payouts may be available the same day (depending on the advance company) if the application is sent before 11am ET

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 the total amount due to the third-party company from Agent’s transactions.

If the transaction does not close for any reason, Agent will still be required to pay the advance back and it will be paid on Agent's first subsequent transaction that closes.  

If you have any questions about the Commission Advance policy or need a recommendation for a 3rd party company that we work with, please reach out to cadcommissionadvances@therealbrokerage.com.