Purpose #
The purpose of this policy is to establish a clear and consistent process for the disbursement of commissions when commission funds must be received and processed by Easy Realty rather than being disbursed directly to an Associate through a Commission Disbursement Authorization (“CDA”). This policy is intended to ensure compliance with brokerage requirements, transaction auditing standards, accounting procedures, and applicable laws and regulations.
Commission Disbursement Authorizations (CDAs) #
Easy Realty will make every reasonable effort to issue a Commission Disbursement Authorization (CDA) whenever a transaction file has been completed, reviewed, approved, and audit certified prior to closing.
When a CDA is issued, commission payment is made directly by the closing agent, title company, settlement agent, escrow company, or closing attorney. In such cases, payment timing is controlled by the party issuing payment and not by Easy Realty.
The issuance of a CDA is a privilege extended by the Brokerage and is subject to compliance approval, audit certification, and operational requirements.
Audit Certification Requirement #
A transaction file must be completed and audit certified before Easy Realty will authorize direct commission disbursement through a CDA.
A file will not be considered audit certified until all required documentation has been submitted, reviewed, and approved by the Brokerage.
Examples of deficiencies that may prevent audit certification include, but are not limited to:
- Missing signatures.
- Missing initials.
- Missing disclosures.
- Missing addenda.
- Incomplete brokerage forms.
- Incomplete transaction documentation.
- Unexecuted agreements.
- Incorrect or inconsistent information within transaction documents.
- Missing settlement statements or closing disclosures.
- Outstanding compliance issues.
- Missing brokerage-required forms.
- Any other document or compliance deficiency identified by the Brokerage.
Associates are responsible for submitting all required documentation in a timely manner throughout the transaction. Failure to submit complete and accurate documentation may delay compliance approval and prevent the issuance of a CDA.
Any transaction file that has not achieved audit certification by 5:00 p.m. Eastern Time on the business day preceding closing may, at the sole discretion of the Brokerage, be deemed ineligible for a Commission Disbursement Authorization (CDA) and may require commission funds to be remitted directly to Easy Realty for post-closing review and processing.
If a file has not been audit certified prior to closing, Easy Realty may require commission funds to be paid directly to the Brokerage rather than through a CDA.
Brokerage-Held Commission Payments #
When commission funds are received directly by Easy Realty, commission payments will be processed and disbursed after all of the following conditions have been satisfied:
- The transaction has successfully closed.
- Easy Realty has received the commission funds.
- The funds have fully cleared through the banking system.
- All required transaction documents have been submitted.
- All compliance deficiencies have been corrected.
- The transaction file has been reviewed, approved, and audit certified.
- Any required accounting review has been completed.
- Any amounts owed by the Associate to the Brokerage have been identified and applied.
Commission processing will not begin until all of the above requirements have been satisfied.
Easy Realty will process and disburse commissions following completion of the required compliance, audit, banking, and accounting procedures. Processing times may vary based on file completeness, banking availability, accounting review, compliance requirements, deductions, disputes, or other operational factors.
Responsibility For Delays Caused By Incomplete Files #
Associates acknowledge that incomplete or non-compliant transaction files may prevent the issuance of a CDA and require commission funds to be routed through the Brokerage.
Any delay resulting from missing documents, missing signatures, missing initials, compliance deficiencies, incomplete transaction files, failure to respond to compliance requests, or failure to achieve audit certification prior to closing shall not be considered a delay caused by Easy Realty.
The Associate is solely responsible for timely submission of all required documentation and for correcting any deficiencies identified by the Brokerage.
Cleared Funds #
For purposes of this policy, “cleared funds” means funds that have been received by Easy Realty and are fully available for withdrawal and disbursement without restriction, reversal risk, banking hold, or processing delay.
Funds received after banking cut-off times, on weekends, on federal holidays, or on banking holidays shall not be considered cleared until such funds have become fully available in the Brokerage’s operating account.
Compliance Review #
No commission shall be considered payable until the Brokerage has completed its compliance review and approved the transaction file.
Easy Realty reserves the right to delay processing of any commission payment when required documentation is missing, incomplete, inaccurate, inconsistent, or otherwise insufficient to satisfy brokerage compliance requirements.
Commission processing will not begin until all identified deficiencies have been corrected and the file has been approved and audit certified.
Deductions And Amounts Owed #
Prior to disbursement, Easy Realty may deduct any amounts owed by the Associate to the Brokerage, including but not limited to:
- Transaction fees.
- Referral fees.
- Technology fees.
- Marketing fees.
- Errors and omissions insurance fees.
- Commission advances.
- Chargebacks.
- Outstanding balances.
- Any other amounts authorized under the Independent Contractor Agreement, Office Policy Manual, commission plan, or other written agreement.
Disputed Commissions #
Easy Realty may delay commission disbursement if there is a dispute or uncertainty concerning commission entitlement, commission splits, referral obligations, transaction status, payment instructions, legal requirements, escrow matters, or any other issue affecting the proper disbursement of funds.
No commission payment shall be required until the matter has been resolved to the satisfaction of the Brokerage.
Professional Communications #
Associates may request reasonable updates regarding the status of commission payments through approved Brokerage communication channels.
Easy Realty expects all communications with Brokerage staff, accounting personnel, compliance personnel, management, and the Broker to be conducted in a professional and respectful manner.
Harassing, abusive, threatening, hostile, excessive, or otherwise unprofessional communications regarding commission payments, compliance reviews, auditing requirements, or brokerage operations may constitute a violation of Brokerage policy and may result in disciplinary action, up to and including termination of the Independent Contractor Agreement.
No Waiver #
The fact that Easy Realty may process and disburse commissions promptly in certain transactions shall not create an obligation to do so in future transactions or under different circumstances.
Nothing in this policy shall be interpreted as guaranteeing payment within any specific time period, and all commission payments remain subject to the conditions, reviews, approvals, deductions, and procedures set forth in this policy.
Policy Incorporation #
This policy is incorporated into and supplements the Easy Realty Office Policy Manual and the Independent Contractor Agreement.
In the event of a conflict between this policy and the Independent Contractor Agreement, the Independent Contractor Agreement shall control unless otherwise permitted therein.
Easy Realty reserves the right to amend, revise, modify, or replace this policy at any time upon notice to Associates.
Associate Acknowledgment #
By associating with Easy Realty, the Associate acknowledges and agrees that commission payments are subject to compliance review, audit certification, receipt of cleared funds, accounting review, applicable deductions, and the commission processing procedures established in this policy.
The Associate further acknowledges and agrees that failure to submit complete transaction documentation in a timely manner may prevent the issuance of a Commission Disbursement Authorization (CDA), may require commission funds to be paid directly to Easy Realty, and may result in commission payment being subject to the Brokerage-Held Commission Payment procedures described in this policy.
