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Commission Advance for
Realtors – FAQ

(Frequently Asked Questions)

What is a Real Estate Commission Advance?

A real estate commission advance is a financial tool that enables a realtor or broker to receive an advance on a real estate transaction commission that has been earned prior to the date when it would normally be available to the realtor.

The realtor does this by “factoring” or selling the commission to a Commission Advance financing (or factoring) company like Corsa Finance for a small fee.

The realtor receives immediate access to working capital that would otherwise be locked up in earned-but-unpaid commissions so they can grow their brokerage more quickly, expedite cash flow to meet expenses, make tax payments, cover unexpected liabilities or for many other business purposes.

Here’s a comparison:

Typical Real Estate Transaction Real Estate Transaction with Commission Advance
  • Buyer and seller agree on transaction terms and a purchase and sale agreement is fully signed around
  • Any processes which must be completed prior to closing are executed (title search, property lien search, inspections, etc.) which can take weeks or even months to conclude
  • A closing date is set
  • Closing is completed
  • Funds are dispersed, including proceeds due to the seller, and commissions due to realtors or brokers.
  • Buyer and seller agree on transaction terms and a purchase and sale agreement is fully signed around
  • Any processes which must be completed prior to closing are executed (title search, property lien search, inspections, etc.)
  • A closing date is set
  • Commission advance provides immediate funding of commission earned to realtor / broker
  • Closing is completed
  • Funds are dispersed, including proceeds due to the seller, and commissions due to realtors or brokers or commission advance company.

Synonyms for Commission Advance include: Real Estate Commission Factoring, Broker Commission Factoring, Broker Commission Advance, Commission Advance for Realtors, Commission Factoring for Realtors, etc.

How does the Commission Advance process work?

A real estate agent applies for a Commission Advance. On approval, the realtor receives as much as 93 percent of the amount of commission earned right away, instead of waiting for the property’s closing date and distribution of funds.

How quickly can a Commission Advance be funded?

Once fully approved, funding can be done as quickly as the next business day. The process of obtaining needed approvals and verifications may take 1-2 days or longer, depending on the responsiveness of realtors, brokers and other interested parties.

What type of real estate deals qualify?

Realtors may be able to receive an advance on commission for many different types of real estate transactions, such as:

  • residential home sales, resales and leases
  • new home sales and pre-construction land or plat sales
  • condominium sales (new and resales)
  • commercial property sales and commercial leases
  • industrial property sales and leases

Are there minimums?

Realtors may apply to finance any amount of realtor commission advance with us.

Can a commission advance be used to pay personal expenses?

Since commission advances are business transactions, the funds can be used only for business purposes.  Examples include paying taxes, payroll, contractors, marketing, transportation, or other costs associated with the business.

What does commission advance financing cost?

Our commission advance rates are competitive and transparent. We fund up to 80 percent of the amount of a commission and may charge as little as 7 percent as a financing fee. For example:

  • Sales Agreement is signed and commission is earned
  • A realtor factors the commission and receives up to 80 percent of the amount of commission earned in the form of a commission advance
  • Corsa Finance earns a 7 percent financing fee (dependent on the length of time between the advanced and scheduled closing date) which is paid when escrow disburses the funds.
  • Day 30, 45 or even 60+ – Closing is completed and funds are disbursed by the escrow company, including repayment of the advance to Corsa Finance.

Other fees that may apply include wire transfer or transaction fees charged by the realtor’s financial institution.

What happens if the real estate transaction falls through?

While rare, it’s possible that a real estate transaction will fail to conclude. In this case the realtor is responsible to repay the advance.  The realtor may also assign a different commission to repay the original advance.  Additional finance fees may apply depending on the time the original commission remains outstanding.

Can a realtor factor multiple commissions at the same time?

Yes! In fact, by factoring multiple commissions a realtor can free up a larger lump sum of working capital, which could be essential to growing or expanding a brokerage.

Fast, Secure and Easy

Complete the application process and get approved for commission advances today.

real estate commission advance process

1. Apply online – it’s fast, easy and free.

what is real estate commission factoring?

2. Submit deal details and documentation electronically.

real estate commission financing

3. On approval, receive funds the same or next business day via wire transfer.

commission advances for realtors

4. Speed up cash flow and stay focused on building your business.