Learn What Each Section On Your CDA Means.
Commission Disbursement Authorizations (CDAs) outline the financial details of a real estate transaction, including relevant parties to the transaction as well as specific disbursement instructions. CDAs ensure that agents receive their commission in a timely manner. To make the process clear and straightforward, let's break down each section of what you can expect to see on your CDAs with Radius.
CDA Breakdown
- Left Column Sections
- Description: This one's simple: it's the property's address. You need to know exactly which property you're dealing with to avoid any mix-ups.
- Seller: Here, you'll find the name of the seller. It's crucial to make sure you know who's selling the property.
- Buyer: Just like the seller's name, the buyer's name is vital for clarity.
- Sale Price: The sale price is the total amount the property is being sold for. This is the number that is used to calculate your commission.
- Escrow Company: Here's where you'll find the name of the escrow company that's holding onto the funds of the transaction until they are ready to be disbursed.
- Escrow Agent: The escrow agent is your go-to contact at the escrow company, and their name will be listed here.
- Escrow Agent Email: This will be the email address of the individual named in the Escrow Agent section.
- Right Column Sections
- Close Date: The close date is when the deal is officially sealed and the transaction will be considered completed. CDAs are disbursed based on the date the property closes.
- Representation: This section tells you whether you're representing the buyer, the seller, or both.
- Seller Agent: Here you'll find the name of the agent representing the seller.
- Buyer Agent: Here you'll find the name of the agent representing the buyer.
- Compensation: This section lists the total commission you've earned.
- Disbursement Instructions
- On the bottom half of the CDA, you'll see a table that lists how the commission gets divvied up and the specific dollar amount each listed party will receive:
- The amount payable to Radius will consist of some or all of the following (if applicable):
-
- Brokerage Fee/Split
- Audit Fee
- E&O Payment
- Outstanding Subscription Fees as per outlined in your ICA
-
- On the bottom half of the CDA, you'll see a table that lists how the commission gets divvied up and the specific dollar amount each listed party will receive:
Note: In this sample CDA, Radius Agent's total consists of 10% of this agent's 90/10 split + the $125 audit fee listed in their ICA. The remaining 90% of the commission (minus the $500 TC fee that will go directly to the TC) goes to De, our agent.
- Additional Information
- Below the disbursement instructions, you'll find two sections:
- A Date field and Approved By signature field.
- When you receive your CDA, both of these fields will have been filled out and signed by our lead auditor.
- A contact number for escrow agents to confirm wiring instructions as well as our corporate address and email address for contact purposes.
- A Date field and Approved By signature field.
- Below the disbursement instructions, you'll find two sections:
Please note: Radius does not accept checks for any transactions outside of leases and referrals. All funds outside of lease and referral transactions must be wired to Radius.