Commission Advances Canada
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. Real must sign to agree to the Advance terms with the third-party advance company and repay the funds on the agent's behalf.
Conditions of Commission Advance from Real:
- Transaction must be firm
- Transaction must be Broker Compliant
- Agent can advance a Maximum 70% of agents portion of the commission
- Minimum Total Commission Advance amount $1501
- 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 the Company
- Company reserves the right to limit the number of concurrent commission advances an agent may have.
Commission Advance Process:
- Agent completes their preferred 3rd party advance company application
- Email completed advance application before 11am ET for approval to CADcommissionadvances@therealbrokerage.com
- Payouts may be available the same day 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 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 questions about this policy, please reach out to Support either by emailing supportCAD@therealbrokerage.com or clicking on the Support tab in your app.