Commission Advance Frequently Asked Questions
We help you grow your business to provide working capital and financing when your commissions are delayed.
Q: What is a commission advance? A commission advance is when part of the commission due a real estate agent or broker is paid prior to the escrow closing.
Q:Why does a commission advance make sense?
A commission advance from Express Cash Flow gives you fast access to your pending commission before closing—so you can cover expenses, invest in marketing, and keep your business moving. It’s not a loan—just early access to what you’ve already earned, with no credit check and same-day approval.
Q: What is a Listing Advance? Listing Advance ranges from $2,500 to $3,000. Price is dependent on both how many listings the agent has, as well as how much the advance is in comparison to the sales price. A Listing Advance is expected to be open for 30-45 days. Once escrow is opened we can structure two additional commission advances.
- 1st The initial Listing Advance (when escrow is not open)
- 2nd Possibly an additional commission advance at the opening of escrow once the EMD has been confirmed received by escrow.
- 3rd Possibly an additional commission advance happens once contingencies are cleared.
A new agreement is drawn up between all parties at the opening of escrow reflecting the listing advance and both commission advances.
- Its best to have an active Zillow profile that shows all your listings and provides transparency to your production.
- A minimum of 5 active listings on the MLS that are your own listings not part of a team
- Listings with days on the market of greater than 60 days do not qualify
- There is a possibility of trenching or double dipping on a listing advance if you’re an existing customer with a sufficient amount of listings.
- We don’t do advances to broker owners
Q: What happens if my sale’s closing is delayed? We have a 10 day grace period after the original scheduled closing date.
Q: Is my broker liable if the agent defaults on the commission advance?
The broker is not liable for repaying of the commission advance if there was no fraud or misrepresentation of the transaction.
A commission advance without a broker signature doesn’t happen often, but it’s defined as when a real estate agent receives a portion of their future commission before closing, without the broker co-signing the agreement.
Normally, the advance company requires the broker’s signature because the broker controls the commission disbursement, and it ensures the advance provider gets paid directly from escrow at closing.
The Process:
- The agent submits a deal under contract, closing date, any contingencies that are cleared and their net commission.
- Express Cash Flow will review and underwrite the agent and the property
- Preferably the settlement company or escrow repays Express Cash Flow instead of the agent repaying Express Cash Flow.
Q: What happens if the transaction doesn’t close? We know not every transaction goes smoothly. If you have other open escrows (or will soon), the advanced amount can be transferred to whichever of those open escrows you’d like, so long as the advanced amount (plus our fee) is less than the commission you are due on the new escrow. You can also pay us back out of pocket, if you prefer. Transactions sometimes fall through so we are committed to helping you throughout the entire process.
Q: How do I apply for a commission advance?
- Upload the purchase agreement and any counter offers between the parties
- The settlement company or escrow company full contact informaiton
- Your brokers full contact information if you are an agent
- Colored copy of your drivers license
- Last months bank statement and voided check
- Your production history for the past 24 month exported from the MLS if your production is not shown on Zillow
Once we receive the documents we will review and reach out to you if we have any qustions. If approved we will then send you over an agreement that you and your broker will e-sign. Once executed then we will submit it to the settlement company or escrow officer for confirmation. Once they have confirmed then we will fund your commission advance.
- Signed Purchase Agreement (RPA)
- Copy of your Driver’s License
- Broker and Escrow Contact Information
- A Printout of your Last 24 months of MLS Transaction History
- Copy of your Most Recent Bank Statement and Voided Check for Funding.
Q: How much does it cost?
- $2,500 to $5,000 Advance, the fee is $400, closing within 30 days
- Over $5,000 Advance, the fee is 10%, closing within 30 days
- Large initial requests by first time customers that are substantially more then the average customer will be declined.
Q: Independent Broker Fees? Minimum advance fees to be $500 instead of $400.
Q: How do I receive my commission advance?
Express Cash Flow funds your advance via real time payment (RTP) similar to a Zelle or its sent same day ACH.
Q: What Does Dynamic Pricing Mean?
Dynamic pricing means that the fee you pay for a commission advance can vary depending on several elements, such as the risk associated with the deal, the amount of the commission, and most importantly, the time frame within which the deal is expected to close.
For instance, if you have a property that is closing in a week, the fee for advancing that commission might be relatively low. This is because the risk is low; the deal is almost certain to go through, and the funds will be released shortly. Therefore, the cost to advance is minimized.
Q: Why Does the Fee Change for Longer Transactions?
In contrast, if you have a property that is expected to close in 64 days, the fee for advancing that commission is likely to be higher. The extended time frame introduces more variables and, consequently, more risk. Market conditions could change; financing for the buyer could fall through, or any number of issues could delay the closing. Because of these uncertainties, the fee is adjusted to account for the increased risk and time value of money.
The essential takeaway is that just because you received a low fee on a deal that was closing quickly, it doesn’t guarantee that the same low fee will apply to a transaction closing in a longer time frame. Each deal is evaluated independently, taking into consideration its unique circumstances.
Q: Do I need good credit? Nope. We do not check your credit. Verification and review of all publicly available information.
Q: What type of real estate deals do you advance commissions on? Typically Single Family Residential properties, but we are able to accommodate most property types. Give us a call if you are unsure- (844) 818-2274
Q: At what stage of the real estate transaction can I advance my commission? Ideally, we would want all contingencies to be removed, however we understand you sometimes need an advance before that takes place. That’s OK too, we’ll just need to know when your contingencies are due to be removed.
Q: How quickly can my advance get processed? Very fast!! Once you complete the application and provide us with the documentation our underwriting is very fast. We research you as an agent, review the property, confirm with escrow then wire your funds immediately into your account. You can use the funds the same day. If it’s a new escrow the earnest money deposit (EMD) does need to be confirmed by escrow before we fund the commission advance.
Q: Will my transaction be confidential? Your transaction will be kept confidential between your broker and escrow agent. The buyer and seller will not see the transaction, and we never sell our customers’ information.
Q: Is there a minimum size commission that you advance? Minimum is $2,500.
Q: Are there any application fees, wire or hold back fees? There are no other fees besides the advance fee noted in the agreement.
Q: Can I advance more than one deal at a time? Yes. We have no maximums on the number of advances outstanding at any time.
Q: Is a commission advance cost effective? YES – especially when you consider some of the alternatives such as:
- Losing control of your business;
- Losing out on profitable opportunities due being strapped for cash
- Pledging your home and other personal assets;
- Losingout on a marketing opportunity that would increase sales.
Q: What’s my Return on Investment if I get a Commission Advance? The sky is the limit! Just like in real estate, what you put the funds you receive from the commission advance towards will determine your ROI.
Q: Can I repay an advance before closing? Yes – all our advances can be paid back early without penalty!
Q: Closing dates: Generally, we don’t advance past 60 days.
Q: Is there a minimum advance fee? Minimum advance fee is $400
Q: Was there something else? Call us at 844-818-2274
Q: Do you have a Zelle or Venmo account? Let us know for after hour wire cut off transfers. We will still need a voided check or bank statement
Q: Are UCC-1 Financial Statements filed if I get an advance?
No UCC-1 are only filed if the agent or broker is in default, once the repayment is completed than Express Cash Flow will terminate the UCC-1
Q: Do you advance to Loan Officers and Mortgage Brokers: We don’t advance to Loan Officers and on very rare occasions to mortgage brokers if they are also representing the buyer or the seller.
Q: Are commission advance fees tax deductible?
If the proceeds of your Express Cash Flow commision advance are used for your real estate busienss expenses, the cost can be tax deductible.
Q:How much of my net commission can I receive from an Express Cash Flow advance?
You can receive up to 75% of your net commissions but some brokerages may approve a lower amount.
Q: How does Express Cash Flow get repaid?
Express Cash Flow gets repaid by the settlement or escrow company. The settlement company receives a commission disbursement authorization (CDA) signed by your Broker instructing them to send the portion of the commission to Express Cash Flow at close of escrow.
Q: Will the buyer or sell find out that I took a commission advance?
No, Express Cash Flow never contact the buyer or seller and the commission advance is not listed on the settlement statement only the commission disbursement authorization.