Today’s real estate word of the day is commissions, hmm? Let’s go ahead and define this, use it in a sentence and discuss it for just a moment, but I don’t know how we’re in discuss it is just me going back and forth, but so it is commissions.
Most salespeople earn commissions for the work that they do. There are many sales professionals involved in each real estate transaction. They could include realtors, loan officers, title reps, insurance agents and more. There’s a lot under the Enmore. The commissions are typically paid out of the charges paid by the seller or the buyer, and they’re reported on the settlement statement is independent line items. Next sentence, real estate items must be paid all commissions directly from their sponsoring broker.
OK, all right. So let’s go ahead and utilize it in a sentence. So I would say that commissions are displayed. And broken down to agents and Shana from Acquisto Real Estate. So what that means is any time that we have a payment that goes out, we have one check that gets reported to us as income on the settlement statement. And then from there, we have what’s called a CDA or commission disbursement authorization, and it takes and breaks down all of the commissions that are paid.
And that’s why they’re paid, who they’re paid to and everything else, as well as the routing information, the address to mail it to and all of our rules and our approval is appropriate to send them out. So that also covers that all commissions need to be paid to the broker. So that’s why one check comes in. Any type of commission has to go to the broker every single time. There’s no other way it can be handled legally. OK, everyone goes in and then everyone goes out and gets dispersed based on the KDA. That’s the word commission or commissions, plural.