As you well know, if your broker allows it, closing agents can pay you your share of the commission directly at closing and remit the remainder and fees to your broker. However, this was not always the case. Prior to 1999, all commissions had to be paid directly to the broker, who then paid the salesperson their share. In 1999, Coldwell Banker petitioned the Florida Real Estate Commission to allow for direct pay to salespeople. The Florida Real Estate Commission agreed with Coldwell Banker and changed the rules. The Florida Real Estate Commission decided that:
- Brokers may give written authorization to their office managers at each of their offices to have commissions dispersed by closing agents directly to its salespersons.
- The office manager may then, upon the written authorization of the broker, give written authorization to the closing agent to disperse commissions to the brokers salespersons.
- The written authorization from the office manager to the closing agent must identify the specific transaction, identify the salespersons entitled to disbursement, and the identify the specific amount the closing agent is to disperse to each salesperson. The written authorization must be signed by the office manager.
- Brokers may do any of the actions authorized for office managers.
- The disbursement may only occur after the transaction is closed.
If you have any questions about this procedure or other related questions, please reach out to me. I am always available at 239-784-5556.