6.5 Commission Reductions and Credits

Occasionally it may be necessary to change the commission offered in the original transaction paperwork or offer credit to a party involved in the transaction.  Written Management (EVP) approval is necessary for any reductions and all credits must appear on the settlement statement. See notes and instructions below:

• Credits of $2,000 and under are automatically approved.
• If a credit is above $2,000, the applicable Company split is still charged to the Agent on the remaining portion.
• If an Agent reaches his/her CAP and has no balance due on his/her billing statement, the Agent can issue a maximum credit of the gross commission after applicable referral fee.
• Once the credit letter is approved/signed, the Agent must submit it to the correct paperwork email address assigned to their office.

Example Breakdown of Commission with Credit, Agent split 70/30:

$10,000 GCI

-$2,000 credit off the top is allowed

$8,000 X 94% = $7,520

70% of $7,520= to Agent $5,264 (Agent can credit up to this amount plus the additional $2,000)

$8,000 X 94% (franchise fee) X .30 = to Company $2,256

TOTAL CREDIT AMOUNT: $7,264.00 on a $10,000 Gross Commission (assuming no applicable referral fees due)