How long until agent is paid?

Question

I'm a new real estate agent. After a deal closes, I'm not paid for weeks to even a month or more later.  Is this standard?

Charlie Cameron · Answer

@David M. Sure, I know what you mean.  I meant that the check should be cut at closing.  I've certainly had mine mailed when I couldn't be there.  Title will mail it that day if they know where to send it.

Charlie Cameron · Answer

@Sarah Ann - We get paid at closing, every closing. Walk away with a check from the title company. It's 2020, after all!

Ryan Landis · Answer

@Sarah Ann so the way it typically works is escrow cuts a check to the broker (if they mail it could be 1-7 days). Then they deposit, needs it to clear and then should be able to cut the check to you, pending a complete broker file/review. Some brokers may require the broker file way further in advance so just depends on timing. 30 days seems long in general, but there are a bunch of moving pieces to it so I would just make sure you have a complete file early on so it is more a paperwork item compared to anything else.

David M. · Answer

@Sarah Ann

Oh wow...  I see.

Honestly, I've found, in general across all kinds of business fields, that small businesses "mom and pop" shops are either organized or not.  That is to say, either (s)he has his s**t together or doesn't  Sounds like the latter.  Since you are new, I'm guessing you aren't doing many sales.  So, he should be working with you to provide training and mentorship (unless for some reason you didn't want it).  So, he should know when you have a closing.  He should know to expect a commission check.  He should know to check his mail within the week time period, deposit the commission check and with mobile deposit its really easy now -- even my semi-bs brokerage is doing it and moving to fully electronic files.  He has some accounting paperwork to do go with it.  Maybe in a day or two the check clears and then he cuts your check or electronic direct deposit.

Personally, he can come up with all the excuses he wants.  But, he is supposed to be running a business now and so has to get it together.   I get that its only the two of you so he hasn't hired an office assistant,yet.  But, that just means he has to do the work himself.

Anyway, thats my two cents.  There was some reason that you signed on with him.  Hopefully, he has some sort of business/growth plan and can get his brokerage off the ground.  Otherwise, it sounds like its time to move on.  Good luck.

Sarah Ann · Answer

Thank you very much for all your replies. I work for a very small broker (just him and myself). Do you think that could be why it is longer? Perhaps our payments just aren't automated? Also, I couldn't talk with my co-workers because I don't have any lol.

David M. · Answer

@Charlie Cameron

Great.  Just wanted to make sure OP understood since declared was a new agent.

Sam Shueh · Answer

You should storm into your broker coordinator getting paid assuming closing paperwork is completed. If it is 1 month or later from a small brokerage ask why.

David M. · Answer

@Charlie Cameron

FYI:  in NJ realtors have not been invited to closings since Covid-19. Only the signatories go to closing.. so, it’s been tough like the “old days” to walk away with a commission check.

But, please don’t misunderstand.  I agree with your sentiment. After every closing make sure your commission check is sent out

Tara S. · Answer

@Sarah Ann no! I had a broker like that and it’s not normal! My new broker pays be within 24 hrs!

David M. · Answer

@Sarah Ann

That seems excessive.  Many brokerage franchises have become so electronic/automated that the agent gets paid the next day (after the office receives the commission check from closing).  With covid those offices just may process incoming checks once or twice a week.

I believe in nj my broker has to pay me my commission within a week or two.  They can’t hold onto it forever.

What has your managing agent told you?  What about some of the other agents in your office? Have you made any friends with agents outside your office?  What do they say?  (Why are you asking on BP?). Have you done your due diligence and made your commission check was mailed or picked up (just saying although difficult/impossible with covid at least in nj)?  If the commission check never made it to your office you really can’t blame your broker.  Unless it works differently in your State/area, it’s generally on the agent to get their commission checks..

Good luck.

How long until agent is paid?

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