Over the past 20+ years as a commission advance service provider, one of the most common questions we receive from real estate agents and brokers is: “What happens if my deal is delayed or falls through?” And we completely understand why they ask.
For agents, the buying and selling process can be unpredictable right up to the last moment of closing. Financing issues, inspection findings, or last-minute buyer hesitations can cause a transaction to not close on time or even fall apart.
With RealCommissions, agents automatically receive a 15-day grace period added to the original scheduled closing date. This 15-day grace period helps account for and cover most of the typical delays that can happen without any additional cost to the agent. If a deal does unfortunately fall through, our closing team collaborates with the agent to replace the original pending transaction with the next scheduled closing for the agent.
As for brokers, they are not held responsible for the commission advance if a closing unexpectedly falls through. Our client is the agent, meaning the brokerage is not liable. We do ask for the brokerage’s cooperation to ensure we are paid from the next closing for the agent.
A key benefit of our commission advance program for all involved is the built-in safety net known as the Reserve. Similar to money held in escrow, we temporarily hold back a small amount of the commission advance to cover if the commission being earned by the agent winds up being lower than originally planned. The Reserve also covers any potential additional fees to the agent if the closing occurs beyond the 15-day grace period. Brokers really appreciate the Reserve as their administrative staff does not have to be involved to adjust for any small fluctuations in the commission amounts being earned by the agent.
For more information about the RealCommissions program, reach out to us via email at quote@realcommissions.com or call us at (888) 610-0003. You can also apply or request a no-obligation quote by clicking [Get a RealQuick Quote] or [Apply Now].
