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What is a Cap Deferment?

  • Updated

A Cap Deferment is an agreement between a new agent and the company that will defer the agent's cap for a certain period of time. 

These are granted under specific circumstances that Real determines on a case-by-case basis. In most cases, it is when an agent has been capped at their previous brokerage, and a deferment is allowed so they can join Real as a "capped" agent for a predetermined time. 

A cap deferment will change the agent's anniversary reset date from the normal reset date as outlined in the ICA to the first of the month following the end date of the deferment. 

What happens during Cap Deferment:

During the Cap Deferment (also called Capped Status Period):

  • The agent will not pay the 15% split to Real
  • The agent will pay the post-cap transaction fee
  • The agent will pay the Brokerage Fee
  • The agent will pay the CBR Fee
  • The agent will not be eligible for Capping Awards, Elite Agent Awards
  • The agent is not eligible to participate in the Stock Purchase Plan
  • The agent will not produce Revenue Share (Sponsor will not receive it) as there is no Split to Real.
  • The agent will receive Revenue Share and will pay the annual Revenue Share Fee on Revenue Share Earned. 

The Cap Deferment period does not affect your Team Split / Team Relationship. It only affects the amounts payable to Real. 

Important Note: 

  • When the cap deferment ends, the anniversary date will reset to the 1st of the month following the end date of the cap deferment.
  • When the anniversary date resets, the agent will start over with a new Anniversary Year and be required to pay:
    • The Brokerage Fee
    • The Annual Revenue Share Fee
  • This means they may pay these fees twice within their first full year at Real. 

Example:

  • Mike joins Real on August 29, 2026.
    • His Join Date will reflect August 29, 2026
    • His Anniversary Date will reflect September 1, 2027
  • Mike is approved for a Cap Deferment through December 31, 2026
    • Mike will not pay the 15% Split to Real on any deals closed between August 29 and December 31, 2025. Instead, he will pay the $285 post-cap transaction fee (as if he's capped).
    • Mike will pay the $250 Brokerage Fee on his first 3 deals.
    • Mike will pay the $175 Annual Revenue Share Fee on any Revenue Share earned in August or beyond.
  • On January 1, 2026, Mike's Anniversary date will reset and change to January 1, 2027.
    • Mike will begin paying the 15% Split to Real until he contributes the full Agent Cap amount.
    • Mike will pay the $250 Brokerage Fee on his first 3 deals closed on or after January 1, 2026 (even if he already paid the fee during his cap deferment).
    • Mike will pay the $175 Annual Revenue Share Fee on any Revenue Share earned in January or beyond (even if he already paid the fee during his cap deferment).