This article explains why commission payments may never be made directly to agents and how payments must flow through the brokerage.
This rule is not negotiable.
It is not a preference.
It is how brokerage law and compliance work.
Understanding this upfront prevents problems at closing and delays in getting paid.
The Rule of Thumb
All business is the broker’s business.
That means:
- Commission payments may only be made to brokers
- Agents may only be paid by their broker
Agents may never receive commission funds directly from any party.
Why This Rule Exists
Real estate agents operate under a broker’s license.
Because of that:
- Compensation is earned by the brokerage
- The brokerage is responsible for compliance, accounting, and disbursement
- Agents are paid by the brokerage, not by the closing party
This structure protects:
- The agent
- The broker
- The consumer
- The transaction
Who Agents May NOT Receive Payments From
Agents may never accept commission payments directly from:
- Title companies
- Closing attorneys
- Sellers
- Buyers
- Property owners
- Management companies
- Other brokerages
Even if the payer offers.
Even if “that’s how it’s always been done.”
Even if the check is already written.
How Payments Are Made Correctly
Commission payments must flow one of two ways:
- From the closing or paying party to Easy Realty, then disbursed to the agent
- Directly from the closing to Easy Realty via CDA, with the agent paid through the brokerage
There are no exceptions.
Rentals and Special Cases
Rental transactions often involve:
- Owner‑issued checks
- Management company payments
- Other brokerages issuing funds
Even in these cases:
- Payment must be made to Easy Realty
- Easy Realty will disburse the agent’s commission by ACH
Agents must never deposit or cash commission checks themselves.
What Happens If Funds Are Sent Incorrectly
If commission funds are sent directly to an agent:
- The funds must be returned or redirected
- Payment will be delayed
- Additional processing may be required
These issues are avoidable by following the correct process from the start.
Why This Protects You
This rule exists to:
- Ensure accurate accounting
- Maintain broker compliance
- Prevent tax and reporting issues
- Protect agents from liability
It also ensures every transaction file is complete and defensible if reviewed.
The Bottom Line
If money is moving, the broker must be involved.
Agents do not receive commission payments directly.
Ever.
When payments flow correctly, closings are smoother and payouts are faster.
Related Resources
- How to Request a CDA (Commission Disbursement Authorization)
- CDA Timing: When to Submit So You Get Paid On Time
- What Documents We Need to Process Your CDA
- How Support Requests Work at Easy Realty
