0:03 In 0:04 this tutorial we will show you how to prepare and circulate a real estate commission invoice 0:11 The purpose of the commission invoice is to 0:15 alert the attorneys on a transaction prior to closing 0:18 how much commission is payable to your firm for your involvement in the deal either as a listing agent or? 0:25 As a buyer’s agent 0:28 you will usually receive the requests for the commission invoice 0:32 around two or three days prior to the closing 0:36 Customarily, when you receive the request it will come from either one of the attorneys or one of the paralegals or assistants 0:44 working on behalf of either the buyer’s attorney or the sellers attorney 0:50 The request is usually very time-sensitive 0:53 for whatever reason the attorneys usually don’t ask for it while in advance instead they hysterically 1:01 demand it in some cases the same day or the same afternoon when they send out the request 1:07 But fortunately it’s not a difficult task 1:09 so even if it is a short notice, it shouldn’t be a problem for you to prepare it now 1:16 We’re looking at a template for a commission invoice. This would vary by firm. But the truth is there really is no required 1:24 format for this in some cases real estate brokers really just send an email 1:29 However, it is more professional to prepare an actual document and 1:34 send that to both attorneys as well as your your counterpart if there’s another broker working on the transaction 1:42 So you may be asking or thinking 1:45 where do we find the Commission info for the deal? 1:47 Well, 1:48 the commission information for a transaction has been known well in advance well before hopefully you actually proceeded to 1:56 transact and put the deal in contract 1:59 so the way to remind yourself of what the Commission amount would be is 2:04 to look at the deal sheet for the transaction now here we have a 2:10 section of a deal sheet 2:12 and it is for illustrative purposes only. So it’s a fictitious address 2:16 Everything is just made up, but we’ve put this here to show you 2:20 exactly where you would find the commission information 2:24 So let us assume that in this deal. We are the listing agent on the deal 2:30 so we’ve actually prepared and sent out this deal sheet probably a few months ago and 2:35 the commission information is listed usually towards the bottom. So in this case the total commission is 2:42 6% and the split is 3% to the listing broker which would be us and 2:49 3% to the co broker which would be the buyer’s agent from another firm 2:55 So we know that the commission is 3% and we also know that the 3:01 purchase price is 3:03 six hundred and eighty-five thousand so 3:07 well open up excel or take out a calculator 3:10 Well put 3:12 685,000 3:15 We’ll put three percent and we will just do the calculation 3:22 So the total commission here is 3:24 twenty thousand five hundred and fifty dollars 3:26 So you would open up the template and 3:29 you would start filling the sentence. So the Commission is three percent and 3:36 As per our calculation, it’s twenty thousand five hundred and fifty dollars so you would fill this in 3:44 twenty five fifty 3:46 You would obviously put the date so whatever that might be and 3:52 here you would fill in the seller’s attorney and the buyers attorney so we’re just gonna make make these up so we’re gonna call this 4:00 Smith Jones 4:03 Okay, maybe that’s the sellers attorney buyer’s attorney will say her name is Sheila 4:12 Richards 4:14 So you would have this information from the deal sheet and 4:18 Just to remind you. This is only a part of the deal sheets 4:21 So there’s another section at the top which has the buyers info the sellers info and the attorneys for both sides 4:28 So you put that in now, the address is obviously important. So in this case again, it’s fictitious 4:34 203 East 25th Street Apartment 4C 4:38 so in the address 4:41 we would fill in 203 East 25th Street 4:46 Apartment 4C 4:49 Presumably, we have the city 4:51 of course in New York. In this case and just gonna make up the ZIP code in the interest of time 4:56 So let’s say the zip code is 1 0 0 2 1 5:00 Now the name of the seller and the buyer again will be in the deal sheet. So let’s just 5:06 make it up again, John 5:09 Smith and 5:11 the buyer is 5:13 Leslie 5:16 Alexander and the 5:18 final thing we need to do is fill out the sale price 5:21 The sale price is six hundred and eighty five thousand. So we’ll put that in here and 5:29 Just quickly review it to make sure that it’s complete 5:34 Looks like it’s complete so we would go ahead and save this as a PDF 5:42 So to pick the file format as PDF and it’s usually nice to 5:47 professionally name the commission invoice. So in this case you could put the date 5:56 We could put the firm in this case is home dax real estate and 6:02 then we would put the address two or three East 25th Street Apartment 4C 6:11 Okay, so we’ll go ahead and click export and 6:15 that should that should save it down as a PDF now the next step is to go into your inbox and 6:22 Iideally you have the email open which is from the attorney or paralegal asking for the Commission invoice 6:27 so you would reply all to that email you would make sure that the other broker is copied if 6:35 if you’d like technically you don’t really need to include them but in many cases the 6:42 broker on the other side will continue to ask you to send the commission invoice 6:46 So an easy way to prevent that is just to copy them on the invoice and that way they know you’ve sent it 6:54 so here we would we would actually go ahead and 6:58 upload the document. So, you know in this case I’m not going to do it, but you would just drag and drop the PDF 7:07 into this screen and you’d have the attachment and 7:11 then of course, you know you would put in the 7:14 unit or the address 7:16 203 7:18 25th Street 7:20 Apartment 4C 7:23 Matthew and John in this case. I had just filled that in previously, but it’s meant to be the names of the attorneys 7:29 so if we do it correctly, let’s just say it’s 7:33 Smith Jones LLP, let’s say the contacts name is Eddie over at that firm. So Eddie and Sheila, so we’ll put 7:40 Eddie and 7:42 Sheila 7:43 Again, I haven’t attached the document just because this is a tutorial but make sure you attach the commission invoice and 7:51 make sure again that you copy both attorneys 7:55 easiest ways to just reply all and once you’ve done that you go ahead and click send and 8:00 that should be the end of the process 8:03 Now looking ahead, once you sent the commission invoice you’re probably a few days out from the closing. So at this point you’ll want to 8:12 remind yourself to 8:13 coordinate the walkthrough with the buyer and the seller 8:16 So if you’re the listing agent, you know, you have the key 8:19 So you do need to provide access. If you’re the buyer’s agent 8:22 you would reach to the listing agent and asked when you could be accommodated for the walkthrough 8:28 After the walkthrough, you have the closing and it’s usually on the same day or in some rare instances. It’s the next day 8:36 We hope that was helpful. If you have any questions, give us a shout. Leave us a comment