Installment Transactions are specific transactions, such as leases, that will be paid out over time.
For example, Agent Abby represented the landlord on a 5 year lease transaction. Instead of getting paid one commission at the time of the execution of the lease, Abby will get paid $1,000 per year for the 5 year term of the lease. This would be best entered in reZEN as an installment transaction!
To enter an installment transaction, follow the steps below:
Step 1: Enter the transaction as you normally would by going to My Transactions, then +Add Transaction. When you get to the Listing Type, Price, and Commission page, select Multiple Payments when asked “How will this transaction be paid?”. Then, enter the rest of the information to complete the transaction.
Note: If you miss this step during the transaction creation process, you will need to terminate and reenter the transaction.
Step 2: Click +Add/Edit Installments to enter the payout information for each installment.
Step 3: Add the dollar amount and estimated payout date for each installment. To add a new installment, click +Add Another, and a place to enter a new installment will appear. The sum of all of the installments should be equal to the Gross Commission Amount listed at the top of the screen. Once all installments have been entered, click Create Installment.
Step 4: Now, you will see a new transaction tab called Installments. The installments tab is where you can edit or remove installments. You will also see that each installment has its own commission calculation, which will need to be validated or approved. There will also be a separate commission document for each installment.
For example, this is the first installment of the example we’ve been looking at. As the time for that installment to be paid approaches, this commission calculation must be approved, and the commission document must be sent.
That’s it! The rest of the transaction proceeds as it normally does!
Other things to keep in mind:
- A separate Commission Document or Trade Record Sheet will be generated and sent for EACH installment.
- All documents, contracts, and disclosures should be uploaded to the checklist for the main transaction.
- The transaction will not show as “Settled” until the final installment is paid.
- All splits and fees will be prorated according to how much of the commission is received with each installment. For example, if Agent Abby has a transaction with 2 installments, each for 50% of the gross commission, she will pay 50% of any splits and fees owed on each installment.
- If you miss marking a transaction as an installment transaction, you will need to terminate and reenter the transaction.