Even so, it wouldn't help in this situation. It's not that the agent wants the commission "early" for the sake of getting it faster, but wants the commission early because after the first of the year the commission split will drastically change. It would not alter the commission split to be in the agent's favor - if she got an advance, she'd still have to take the lower split, because the advance would be based on what she actually has coming to her.

Can you imagine getting advanced the commission and then spend it... At the last minute the lender decides not to lend for what ever reason, or the buyer finds an incredible deal done the street which makes the deposit look like chunk change?

Here in Southern California, their are builders that will refund you your deposit that you have on another home so that you go ahead with a purchase in their developement...

Just ride it out and pray that it closes, risky any other way...

It's "chump change."

And the fine print allows you to substitute another contract in its place or repay in a certain amount of time in the event your deal falls through. Shouldn't be a problem if the original poster is truly concerned about saving split, not in a bind financially.

Additionally, the split would be based on whatever the broker decides it is, Perky. Mine would base it on the current situation, as it would be income at that point in time. Not at the time of closing. Everyone's deal is different and we can't apply our situation to theirs. I do see your line of reasoning, though.

the broker already said what the commission would be - in the agreement that the agent signed when joining the broker's agency. Duh, I know the broker decides - that's what the contract is all about.

I fail to see how getting an advance would make the broker decide to give a higher split, just because the agent went to get money before closing!

I am going to let you win. I could explain it in legal terms, but I don't have the energy, and you want it worse than I do.

I really doubt if Perky wants it more than you do. I would be more inclinded to think that she just doesn't understand how it could happen, and she's probably like most of us -- if there's something we don't know we would like to know.

It sounds like you are saying that fuze's friend could get a commission advance from an outside company. If that's the case then the way I understand it, and probably the way Perky understands it, is that when the sale closed the broker would pay the outside company only the actual commission that was due under the broker's agreent with the agent, and the friend would still owe the outside company the difference.

If you know some other way of this happening then I think we would all like to know.

I'm not trying to "win" anything. I fail to comprehend how getting an outside company to advance the commission to the agent is going to get the agent the higher split.

Sheesh, lighten up. It's not some kind of debate I'm trying to win.

Ben explained it very well in his post above.

If it were me, I'd sit down with my broker and basically ask for the more advantageous commission split on the grounds that it's so dang close to the rollover point. I bet most brokers would say, good job, keep it up, sure no problem!

Other than that I don't see how getting it early, through an advance, solves anything.

Hey, just be happy you (or your friend, or your client, or whomever it is <g>) is getting a commission right now! Uh-"that'd be cool!"

-jeff

SIMPLE VERSION: Say commission is $3K. Agent gets advance of $1K. Check paid to broker who signed the agreement with advance provider (AP) less fees, say $900. Broker pays agent their current split of $900 (if 90/10 then agent would get $810 since the income is paid under agreement for the time at which it is received. Closing date does not come into play legally speaking. It has nothing to do with the Broker Rep Agreement). $1K is filed like a lien on the transaction commission with title company to be paid prior to commission check being issued at closing.

At closing, AP gets their $1K from the title company. Broker gets check for $2K, and then issues agent their current split.

Income is split according to when it is received by the broker, not when it is closed. At least legally, it would work that way unless the Broker Representation Agreement states otherwise and if that is the case, it could likely be challenged. There are so many versions of BRAs that there is no way to know how the subject of this post has things set up.

Hope this helps a little, Ben, but it's the short version - I'm swamped!

pyramid commission schemes are the worst deal in the business