Builder Commission Payments or Commission in Installments

Q. Some of my associates receive prepayments of commission from builders. How should I process those?

A. There are times that a builder can do a “pay at slab” deal. In these cases, the market center will create multiple DAs.

DA #1 - first payment: create a DA for the full sales price, the full unit, and the commission that is being paid at that time.

DAs #2 - close - As additional payments are received and when the deal closes, if the agent is due any additional commission, process another DA as a note payment for that money only. Do not include the unit or sales price, since that was already given.

If the deal fails to close, the commission should be refunded through an Adjustment DA.