Realtor Commission Credit Authorization

Title:
Commission Credit Authorization: Proper Handling of Agent-Contributed Credits at Closing

Overview:
Situations may arise late in a transaction where an agent offers a portion of their compensation as a credit to keep the deal together. While this can be an effective solution, it must be handled correctly. Commission adjustments are not informal—they require broker authorization and proper documentation to ensure compliance and accurate closing disbursements.

Key Guidance:

• Use a Commission Credit Authorization form when offering any portion of your compensation as a credit to a buyer or seller.

• The Commission Credit Authorization form can be found in SkySlope Forms under the MVP Library.

• Obtain broker approval and signature before submitting the credit to the title company or closing attorney.

• Do not rely on emails or verbal instructions—closing agents will require formal, broker-authorized documentation to adjust compensation.

• Submit the executed form to the title company/attorney in advance of closing to allow proper preparation of the Closing Disclosure (CD) or settlement statement.

• Clearly indicate the credit on your brokerage’s Get Paid Input Form so the Disbursement Authorization (DA) accurately reflects the reduced compensation.

• Ensure all parties understand the source of the credit (agent compensation vs. seller concession) to avoid confusion or misreporting.

Compliance Notes:

• Under Florida Statutes Chapter 475, all compensation to sales associates is paid through the broker; agents cannot independently alter or redirect commission without broker authorization.

• Unauthorized changes to commission or disbursement may violate FREC rules and brokerage policy.

• The NAR Code of Ethics (Article 12) requires Realtors to present a true picture in all documents, including financial terms and credits reflected in the transaction.

• Lenders and closing agents require accurate disclosure of all credits; improper handling could impact loan approval or closing compliance.

Bottom Line:
If you are contributing part of your commission to help keep a transaction together, make sure it is handled through the proper channels. Use the approved form from the MVP Library in SkySlope, obtain broker authorization, and ensure the credit is properly reflected in both closing and internal disbursement documentation. Clear process and proper approval protect the transaction, the brokerage, and your license.