Article Sections
Adding Fees on the Commission Plan
Additional Closing Fees
These are fees that will be taken off the Agent's commission after the split and will be credited back to the Brokerage. For example, a transaction fee. You can use a percentage or a flat fee dollar amount.
The fees will be deducted on the commission disbursement for each Agent on this commission plan.
To add these fees, click on the 'View and Edit Additional Closing Fee' button when adding or modifying a commission plan.
Pre-Commission Credit/Debits
Pre-Commission credits/debits are fees that are credited or debited to the Brokerage Gross Commission that are taken off the top, or before the Agent split is determined. These can also be items directly to or from the Brokerage (outside the Agent split).
You can use a percentage or a dollar amount for these items. If you use a percentage you may choose to have it come off the Brokerage Gross Commission, Agent Commission, Sales Price, or Agent Commission after closing fees have been taken off.
This is similar to taking fees off the top on a disbursement, but in this case, it will be added to the commission plan so it can be auto-applied to the disbursement.
Credits & Debits
Select Credit or Debit. If you use credit you may direct funds to a Vendor or a third party. You may also have it credited to another Agent in the company by choosing an Agent. When you select 'Vendor' or 'Agent' enter the name to the right of the selection menu.
If you choose debit to collect funds, enter the fee as a percentage or dollar amount. Then, you must select before or after for the option: 'Calculate agent's commission before or after this item?
Before - The Agent's split will be determined before this item is credited or debited. After - The Agent's split will be determined after this item is credited or debited.
Include this debit in the Net Amount Due to Brokerage (Including Co-Broker)?
This setting will determine if the debit is included in the 'Net Amount Due to Brokerage' line item in the 'Final Commission Breakdown' section of the commission disbursement.
If 'Include this debit in the Net Amount Due to Brokerage' on a Pre-Commission debit item is set to 'Yes' then the debit is included in the 'Net Amount Due to Brokerage' meaning the Net Due to Brokerage net is not decreased. The Net Brokerage Commission is still decreased.
If the 'Include this debit in the Net Amount Due to Brokerage' on a Pre-Commission debit item is set to 'No', then both 'Net Amount Due to Brokerage' and 'Net Brokerage Commission' are decreased by the debit amount. Because this is money for an outside source, it will not be included in the Brokerage net.
Reduce Total Amount Due to Broker
When a pre-commission debit is is added, you will now see a new field, "Reduce the Total Amount Due to Broker"
Note that by default, this field is set to "No". If you would like to change the "Total Amount Due to Broker", set to "Yes"
When set to "Yes", the debited amount will decrease the amount of the "Total Amount Due to Broker" by the amount noted
When set to “Yes” in conjunction with “Calculate agent’s commission before or after this item?” set to “Before”
This debit should reduce both the Total Amount Due to the Broker AND the Net Amount Due to the Broker. This solves the use-case of the brokerage covering the fee amount, because they are paying the vendor from the closing table, without impacting Agent commission.
Adding Fees to the Agent Profile
Fees you would add to the Agent's profile are fees that are associated with that specific Agent on every deal. For example E&O Insurance. Unlike adding them to the commission plan as shown in the above section, this adds the fee on a per-agent basis instead of for every Agent on a commission plan.
To add agent--specific fees, navigate to the Agent's profile and click on the 'Commission Plan & Fees' tab.
Post Commission Credit DebitsThese are debits/credits to an agents commission after the commission split. These fees come directly out of the agent's commission.
Adding Credit/Debits in the Commission Disbursement
You would add these fees in the disbursement for transaction-specific fees such as a referral fee or paying closing costs to a client. To do this, you must be looking at a commission disbursement. The following sections of the disbursement shown have controls for you to add fees to.
Commission Breakdown
This is the Brokerage commission breakdown that includes any commission adjustments being made.
These are fees that are credited or debited to the Brokerage gross commission that are taken off the top, or before the Agent's split is determined. For example, a referral fee to an outside Brokerage. You may use a percentage or a dollar amount for these items.
Listing/Selling Agent Commission
This is the Agent(s) commission breakdown that includes any commission adjustments being made.
Additional Agent Closing Fees - These fees are paid to the brokerage and are reflected in the 'Net Amount Due to Brokerage' line item.
Post Commission Credits/Debits -These fees will be taken from the Agent's commission. For example, a Team leader fee or a payment to a Buyer. This will only affect the Agent's commission, it won't affect the amount due to the Brokerage.
What Happens When a Fee is Larger Than a Commission?
When there is more due in fees than the commission as much will be taken from the Agent as possible, and you'll have the ability to be able to decide if the rest will be charged to the Agent as a billing item.
Auto-Fill Items
Items that can be auto-filled can be found in 'Settings' > 'Edit Auto-Fill items'. 4 sections will be shown for the 4 different fee types.
Agent Billing - This will include all Agent Billing Items
Pre/Post Credit/Debit & Additional Closing Frees - These may be added to Commission Plans, Agent Profiles > Commission Plan & Fees tab, and on disbursements.
If items are updated in this section, they will be updated wherever they're linked.
Please Note: Previously created disbursements will NOT be updated, but any disbursements created after updating these items will also contain the new information.
How to Add an Item
To add an item, navigate to the 'Restrict Forms to Only Accept Auto-fill' checkbox.
If this checkbox is selected, the forms selected by clicking the 'edit' icon may only use auto-fill items added from the Settings.
If NOT selected, you can manually add it at any time and it will be added to the auto-fill items list under the corresponding type.
Items may be deleted to the right under 'Actions'.
Have more questions or need assistance? Please reach out to Customer Support via the blue chat bubble to the right or by emailing cbosupport@insiderealestate.com!