Sep 12, 2012

Tip 35-2012: Reminder about Commissions & Deposits

It is the realtor's normal practice to send the real estate commission disbursement statement to the settlement attorney. It would be helpful if both the selling and listing realtor also sent the disbursement statement to all parties, including both settlement attorneys and realtors. By confirming the information between all parties, any misunderstandings regarding the real estate commission can be resolved before the disbursement of the commission.

It would also be helpful on the disbursement statement to confirm the amount of the deposit, and which agency is holding the deposit (normally the selling agent). The disbursement statement should provide the correct addresses for mailing the commission checks. Finally, any special payments (extended warranty, credit from commission, etc.) should also be spelled out explicitly in the disbursement statement. Copies of all such agreements would be helpful to avoid misunderstandings.

By communicating this information to all concerned, the disbursement of the real estate commission should be trouble free. Any special instructions regarding the preference by the realtor to pick up the commission check instead of mailing it should also be relayed in writing to the settlement attorney.

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville, VA (434-973-7474)

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