How To Create a Pre Construction or Presale Transaction
in ReZen with commission pre-payment or installments
Pre Construction or Presale Transactions are the purchase of new property before it is built. Typically real estate agents get paid a portion(s) of the commission at scheduled times before the transaction completes, for example within a number of days of it being firm, or to coincide with buyer deposit installments. This commission pre-payment or installments is often seen as an advance by developers and may be clawed back in the event of a buyer not completing. The remaining balance of the commission is paid upon the successful completion (for example – when the construction of the building is complete as well as the execution of the purchase) of the presale or pre-construction property at title is transferred to the buyer. Each payment activity needs to be entered as a transaction, and closed out, in order for the agent to receive each payment installment.
Please follow the process below to enter your Pre Construction or Presale Transactions in ReZen with commission pre-payment or installments
- Click “Create Transaction” to create the main transaction in Rezen
- Use the final occupancy close date (only the FINAL commission installment payment you expect to receive will be entered in this transaction)
- All transaction documents will be added to the transaction checklist for this “main transaction” file. Use the property address for this transaction “123 Main St #204”
- Click “Create Referral” to create a referral transaction for EACH commission installment PRIOR to the final payment
- Use the same address as the ‘main transaction’ plus an installment identifier number for each “referral transaction”. For example “123 Main St #204 - part 1” (is the 1st installment to be paid out to agent) “123 Main St #204 - part 2” (is the 2nd installment to be paid out to agent)
- Enter the Estimated Close Date as the date that each commission installment would be due.
- You will need to upload the Developer Payment Schedule to the checklist item# “referral agreement”. No other documents are required to be uploaded to the referral transaction as they will be in the Main Transaction.
- You will need to Validate Commission AND Confirm Trade Record Sheet for each of these Transactions and Broker will mark Compliant prior to commissions being paid out.