What Is a Disbursement Authorization (DA)?
Most state real estate boards will allow a Market Center to present a DA to the closing entity and have the closing entity disburse the broker’s funds at the closing table. The DA authorizes the closing entity to disburse the broker’s funds as outlined on the form, including payments to your Market Center for Company Dollar, Associate Royalty, and Associate E&O payments (if applicable), as well as commission payments to your associate, outside referrals, co-brokers, and designated deduction recipients authorized by associates. Make sure your closing entities know that your Market Center will handle the IRS Form 1099 to all commission recipients.
DAs are entered for every pending commission contract. Enter a DA as soon as there is a contract pending. Complete, or post, the DA when the contract closes. WinMORE requires that the close date for a posted DA be within the current transmittal month.
If the local real estate board does not allow disbursements to be made via DAs, they must still be completed for review by the associate.
Associates submit an online Greensheet to the Market Center to initiate the creation of a DA by going to mykw.kw.com and clicking Greensheet under the Technology menu.