Commission paid in installments

Q. An associate had a listing that closed today and she was not paid commission. She will be paid in the future in installments. Should I close this in WinMORE even though no commission has been received?

A. Anytime commission is paid in installments, a DA has to be created for each payment. Typically, the first DA has the full price and unit with commission only equal to what is actually received. Future DAs have 0 unit and price with only the commission that is being paid at that time. If you charge E&O per transaction you should check with your E&O carrier as most E&O policies require a commission of some kind to be paid in order for E&O coverage to apply. If it’s not covered, you should not collect E&O in this first DA and post it otherwise with $0 total commission. If you do collect E&O, it will be collected in the second DA but not in any further DAs (only applicable once per transaction).