Understanding Tax Accounts for Split-Check Agents

Agents on split-check transactions experience a slightly different setup for their Tax Planning Account compared to single-check agents. While 95% of the process is the same, the remaining differences are important to understand. This article breaks it down for you.

 What is a Split-Check Agent?

• A split-check agent is paid directly at the closing table by the title company. This means:
  Commission payments go directly to the agent.
• Funds are not routed through Real before reaching the agent. 

Key Differences for Split-Check Agents

Tax Planning Account Setup

When a split-check agent creates a Tax Planning Account, they’ll see only one account available under the Commissions section.

• Single-check agents can choose between accounts.
• Split-check agents will only see the Tax Planning Account, since Real doesn’t handle the commission deposit directly.

How Transactions Appear

If you’re a split-check agent and you’ve opted into the Tax Planning Account:

• You'll see a ledger entry labeled “Tax Planning Deposit.”
• This entry represents Real reserving a portion of your commission to help you save for taxes.

Commission Flow Breakdown

Here's how commission is split:

• The tax planning amount is deducted from your total commission split.
• This reserved amount is paid to Real and deposited into your Tax Planning Account.

You'll also see this breakdown reflected in your commission reports and closing disclosures (CDs). 

If further assistance is needed, please reach out to wallet@therealbrokerage.com.