If something changes between the time you approve a commission calculation and close, you will need to reapprove the commission before Conveyance. In Ontario, you also will need to reapprove the trade record sheet.
Watch the 2-minute video below or keep reading:
- Why do I need to re-calculate my commission?
- How Do I Re-Calculate my Commission?
Why do I need to reapprove my commission?
If something changes between the time you approve a commission calculation and close, you will need to reapprove the commission to make sure you are paid the correct amount.
This may be more common when there are many agents on a transaction. A change in any one agent's status can require the commission to be recalculated and reapproved.
The table below shows common examples. If you believe your commission needs to be recalculated, see: How Do I Re-Calculate my Commission?
|Why do you need to reapprove?|
|Lawyer information changes||
|Purchase Price Changes||
|Closing Date Changes||
You (or a member of your team) paid the brokerage fee - Example
You (or a member of your team) caps - Example
You (or a member of your team) opted in / out of the stock purchase plan
|You (or a member of your team) anniversary reset||
|You (or a member of your team) hits Elite agent status||
How to Reapprove Commission:
In all of these cases, Real will recalculate your commission so you are paid the correct amount and we will ask you to reapprove the commission so the deal can move forward in the process.
Please click Approve Commission Calculation to move the deal forward in the process.
Editing Your Commission Calculations:
Additionally, you will need to reapprove your commission calculation any time you:
- Change the sale price - for example, if the buyer asked for a reduction after inspection
- Add someone to the transaction - for example: a team member, team lead, referral.
- Add a referral to a deal
- Add a reimbursement, rebate, or additional fee to the transaction - for example: if you issue a rebate to cover costs after an inspection.
For any of these cases, you will need to edit the transaction, make the necessary change, and re-approve the commission calculation. See: How do I edit a Transaction?
Example #1: Brokerage Fees
- Every transaction you enter will have the Brokerage fee deducted - until you close your third transaction.
- Once you close your third transaction, we will no longer deduct the Brokerage Fee on your transactions.
- This means if you entered a transaction before you closed that third deal, we need to recalculate the commission on this transaction.
- When we recalculate, we will remove the Brokerage Fee (and you will be paid more).
Example: Bernard's First 4 Transactions
Bernard is a Top Producing Agent. If you’ve ever been to Washington, DC, you know who he is. His billboards are everywhere. Real is stoked to have him.
On June 1st Bernard adds 4 transactions to reZEN:
- 1 Main Street - closing Jul 1
- 2 Main Street - closing Jul 1
- 3 Main Street - closing July 7
- 4 Main Street - closing Jul 10
Bernard's commission will be recalculated for 4 Main Street deal once 3 Main Street closes.
Example #2: Capping
- Every transaction you enter will have the 15% Real Split deducted - until you close a transaction that pushes you over your cap.
- Once you cap, all subsequent transactions will have the transaction fee taken out instead of the Real Split.
- This means any transactions you entered before you capped need to be recalculated after you cap.
- When we recalculate, we will remove the 15% Real Split and replace this with the transaction fee (typically, you will be paid more).
Example #2: Shane Caps
Shane already contributed $11,500 to his cap. HE IS SO CLOSE to Capping.
On September 1, he goes under contract on:
- 2 Great Plains Drive for $200,000
- 5 Lauren Road for $500,000
Either of these transactions will put him over his cap!
Assume Shane closes on 2 Great Plains Drive on October 2nd.
We need to recalculate his commission for 5 Laurel Road once he closes on 2 Great Plains Drive.
When he closed on 2 Great Plains Drive, he paid $900 to Real, which means, HE CAPPED!
He originally paid $11,500. $900 will be withheld at Closing and he will receive a refund from Real for the remaining $400.
But this also means: the commission calculation for 5 Lauren Road is now incorrect. We will recalculate the commission for 5 Laurel Road so the Real Split is removed and the Transaction Fee is added instead.