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Credit Letter Template (Internal & EVP use only)
Use this template when an agent needs to issue a credit to the sellers or purchasers.
From time to time it may be necessary to change the commission offered in the original transaction paperwork or it may be necessary to offer a party in the transaction a credit. Written Management approval is necessary for any reductions and all credits must appear on the settlement statement. See notes and instructions below:
- A credit of $2,000 and under are automatically approved.
- If a credit is above $2,000, the applicable company split is still charged to the agent on the remaining portion
- If an agent reached his/her CAP & has no balance due on his/her billing statement, the agent can issue a maximum credit of the gross commission after applicable referral fee
- Once the credit letter is approved/signed, submit to the correct paperwork email for your office.
- Click below to take you to the form based on the agent representation.
- Example Breakdown of Commission with Credit, agent split 70/30:
$10,000 GCI
-$2,000 credit off the top is allowed
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$8,0000 X94% = $7520
70% of $7520= to agent $5264 (Agent can credit up to this amount plus the additional $2,000)
$8,000 X94% (franchise fee) X .30= to Company $2,256
TOTAL CREDIT AMOUNT: $7,264.00 on a $10,000 Gross Commission (assuming no applicable referral fees due)