Broker FAQs
Who is eCommission?
eCommission is the #1 provider of commission advance services to real estate professionals in the United States, having advanced over $1 BILLION since 1999. The Management Team of eCommission pioneered the service of advancing real estate commissions.
What is a commission advance?
A commission advance is a factoring transaction whereby a broker and agent sell a portion of a pending commission for a fee. In exchange, funds are advanced before closing. It’s not a loan. It’s simply access to an earned commission prior to an estimated settlement date.
Why does the broker sign the advance agreement?
As broker, all commissions belong to your company. Agents cannot advance commissions without your consent. The agreement you sign authorizes the purchase by eCommission of a portion of your Agent’s commission for a particular sale at a discount, after any split or balance owing to your Company.
Does the broker have any risk or liability?
No. The transaction is non-recourse. In the unlikely event we advance a commission on a sale that falls through, the agent is asked to replace it using future earned commissions. As broker, your only responsibility is to direct any future commissions earned by the agent to eCommission. If no future commissions are ever earned or the agent leaves your Company for example, eCommission bears the risk of loss.
How is the advance repaid?
At the time an agent applies with eCommission, the broker signs a commission disbursement form or invoice to the settlement company. This document is your instruction to send the portion of the commission that has been purchased, directly to eCommission at close of escrow. Alternatively, the option exists to have your Company direct the purchased commission to eCommission after closing.
What are the advance limits?
eCommission provides commission advances up to 120 days ahead of the scheduled closing date. An agent can request up to 100% of their net earned commission after any split with their broker, to a maximum of $20,000 per transaction. These advance limits can be lowered at your discretion, just give us a call to discuss.
Why is this good for my agents?
Better control of cash flow allows agents to manage their professional lives more efficiently. Experience indicates that agents typically use eCommission 2 to 3 times per year, whenever business expenses surpass monthly cash flow. With eCommission as your partner, you can help your agents control the timing of when they get paid, keeping them focused and engaged, resulting in more listings, more sales and higher levels of productivity.
Does eCommission advance commissions to broker agents?
Yes. eCommission will advance to brokers who are also buying / selling agents on their own sales. There are a few restrictions on the type and size of advances we can provide, however.
