How Long to Get Paid?

In a residential transaction, the broker sends the title company dispersement instructions before the closing. Money is disbursted as soon as the file funds. I have started instructing the title company to make a direct deposit into my account. The money is available within hours of funding. 

In my company, the administrator will not send disbursement instructions to the title company until all of the contract forms are in the file, but the HUD1 comes directly from the title company with the brokerage companies portion of the transaction.

Lease disbursement is another matter entirely. That takes two to three weeks. The owner writes a check which goes to the listing agents accounting dept. who writes a check to the leasing agents accounting dept. who eventually writes the agent a check.

Dana Cottingame Coldwell Banker Residential Brokerage

I wouldn't work at that particular company with 30 days. My company takes 3 days because it must be sent & then returned from our corporate office. I wish it didn't take so long but that would mean a bookeeper stationed in our office. That ain't gonna happen I'm afraid.

Same day, 30 days that ridiculous.

We have a 1 day turn around in my office, does not seem harsh to me. I have heard of others who wait far longer. I would love to get paid the day I close but I don't actually know any brokerages here that do that...anyone else know one in Nashville?

With my company I get the check cut directly to me from the title company and get paid at the closing.

30 days?????? My goodness. Where we are it takes a maximum of five days from closing. The deal closes on Monday, we have our cheque in hand by Friday (and in a small number of cases the following Tuesday). The cheque has in fact come in from the Lawyer earlier then this however, cheque cutting days are Tuesdays and Fridays. Very rarely have we waited longer then, And if we have it's been at the fault of the lawyer not our office.

I write a commission cheque the day I receive it, I have been on both sides and the money is not mine, only my split. Plus we must use a commission trust account!

Ty

After reading several of these comments...I realize that I am really fortunate!  The title company issues two checks...one for me and one for my broker on the same day of closing!!

I get paid the day of closing or the next business day!

We normally get paid within 24 hours.  A week, 2 weeks, 30 days in this economy is outrageous! 

I knew things were handled differently around the country, but this is a real eye opener. The longest I have had to wait for a commission check for a home purchase was two days. Sometimes we have a table funding at closing and I leave the closing with a check. Commisions for rentals usually take 7-10 days after move in.

8-10 days after closing, if all goes well! It's a disgrace. The only exception is if we use in-house settlement company. Can you say "conflict of interest"? And, there's no direct deposit. Unbelievable in this day and age! I've been with three different brokerages over my career and this one is, by far, the worst!

At my office, we get paid quickly, usually the same day, if not, for certain the next.  But I have friends in the business that have to wait, their broker cuts checks only on certain days (i.e. Tuesdays and Thursdays).  But 30 days?  I am surprised that policy exists and they are still in business.

I get paid right after my office gets paid, providing I've got all my paperwork turned in.

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We wait 2 or 3 days now that we are with a boutique agency. We use to have to wait longer and it was a pain. It's important to keep your agents happy and not hold the checks.

I have a small office with only a few agents, so if no historic problem with agent turning in signs and lockbox, I pay them that day or the next, depending on the time of day and/or situation.

Why any agent would choose to work at a company that does not direct their agents to be paid at closing, but requires the checks to go through the broker... is beyond me.  But then again, if the agent has to borrow a sign and a lockbox from the broker... maybe it isn't such a bad idea for the broker.

Geez!! I have been waiting for over 29 days to receive my first commission check at my current company!!!! Fool me once, shame on you, but fool me twice, shame on me! I am on my way to remove my license from that office and hang elsewhere!!! Its bad enough this deal took forever to close but now I been waiting even longer for my check.  What a shame, my first deal done alone was an honest disaster!!!!  It can only get better because this is truly rock bottom......

Erika:  If I were you... I would NOT even "whisper" that you are moving your license... until you have your check in hand, and have cashed it at the bank it is drawn on... and have that cash in your hand.

Some brokers can be very vindictive.  If you don't have the cash from the closing in hand when you tell your Broker you are moving your license... I have heard of instances where the broker came up with various excuses to withhold funds from the agent, or to back-charge that agent for other monies supposedly owed the broker.  Sign fees, desk fees, paperwork fees... just about anything they can dream up and think they can get away with.  Just my suggestion from a gazillion years of experience.

                                                                                      October 26, 2010