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The Commission Disbursement Form is an essential document in real estate transactions, particularly in Idaho. This form serves as a clear directive for the distribution of commission payments between the selling and listing offices involved in a property sale. It outlines specific responsibilities for both the selling and listing offices, ensuring that each party fulfills its obligations accurately. The form requires detailed information, including the buyer, seller, property address, and the closing agent's contact details. Additionally, it mandates signatures from authorized representatives of both offices, which adds a layer of accountability. By instructing the closing agent on how to disburse the commission, this form helps streamline the financial aspect of closing a sale. It is important for both parties to retain copies of the completed form for their records and to facilitate communication if needed. Understanding this form is crucial for real estate professionals as it not only aids in the smooth execution of transactions but also protects the interests of all parties involved.

Form Sample

© Commercial Brokers
Association 2010
All Rights Reserved
CBA Form CDF-ID
Commission Disbursement Form - Idaho
Rev. 10/2010
Page 1 of 1
COMMISSION DISBURSEMENT FORM
IDAHO
SELLING OFFICE MUST:
(1) Fill in the following completely.
(2) Sign in the space provided.
(3) Send one copy to the Closing Agent and retain one copy.
(4) Upon request, send on copy to the Listing Office.
BUYER
SELLER
LISTING NO. TODAY'S DATE
PROPERTY ADDRESS
CLOSING AGENT
CLOSING AGENT'S ADDRESS
The Closing Agent is instructed to disburse the Selling Office's share of the commission and mail it with a copy of this form as
follows:
to (SELLING BROKER)
ADDRESS
to
ADDRESS
to
ADDRESS
SELLING LICENSEE (COMPANY) PHONE
By Please Print
Authorized Signature
LISTING OFFICE MUST:
(1) Fill in the following completely.
(2) Sign in the space provided.
(3) Send the original to the Closing Agent and retain a photocopy.
The total commission owed both the Selling and Listing office is of which the Listing Office's share is
The Closing Agent is instructed to disburse the Listing Office's share of the commission and mail it direct with a copy of this
form as follows:
to (LISTING BROKER)
ADDRESS
to
ADDRESS
to
ADDRESS
LISTING AGENT (COMPANY) PHONE
By Please Print
Authorized Signature
⇩ PDF

Document Specifications

Fact Name Details
Form Title Commission Disbursement Form - Idaho
Governing Law Idaho Real Estate License Law
Form Revision Date Revised in October 2010
Required Actions by Selling Office Must fill in the form completely, sign, send one copy to the Closing Agent, and retain one copy.
Required Actions by Listing Office Must fill in the form completely, sign, send the original to the Closing Agent, and retain a photocopy.
Commission Distribution The form instructs the Closing Agent on how to disburse the Selling and Listing Office's share of the commission.
Contact Information Includes fields for the Selling Licensee and Listing Agent's company and phone number.
Document Retention Both Selling and Listing Offices must retain copies of the form for their records.
Signature Requirement An authorized signature is required from both the Selling and Listing Offices.

Steps to Filling Out Commission Disbursement

Completing the Commission Disbursement form is a straightforward process. After filling out the necessary details, you will send copies to the appropriate parties. Follow these steps carefully to ensure that all required information is provided.

  1. Begin by entering the BUYER and SELLER names in the designated fields.
  2. Fill in the LISTING NO. and TODAY'S DATE.
  3. Provide the PROPERTY ADDRESS where the transaction took place.
  4. Enter the name of the CLOSING AGENT and their ADDRESS.
  5. Specify how the Selling Office’s share of the commission should be disbursed by filling in the SELLING BROKER name and their ADDRESS. Include any additional addresses as needed.
  6. Fill in the SELLING LICENSEE (COMPANY) name and provide a PHONE number.
  7. Sign in the space provided to authorize the disbursement.
  8. Make a copy of the completed form for your records.
  9. Send one copy of the form to the CLOSING AGENT.
  10. If requested, send a copy to the LISTING OFFICE.

Next, the Listing Office will need to follow a similar process to complete their section of the form. They will fill in their details and send the original form to the Closing Agent while retaining a photocopy for their records.

  1. Fill in the LISTING OFFICE details completely.
  2. Sign in the space provided to authorize the disbursement for the Listing Office.
  3. Calculate the total commission owed to both the Selling and Listing Office, and specify the Listing Office's share.
  4. Instruct the Closing Agent on how to disburse the Listing Office's share, providing the LISTING BROKER name and their ADDRESS.
  5. Include any additional addresses as needed.
  6. Fill in the LISTING AGENT (COMPANY) name and provide a PHONE number.
  7. Sign in the space provided to authorize the disbursement.
  8. Send the original form to the CLOSING AGENT.
  9. Retain a photocopy for your records.

More About Commission Disbursement

What is the purpose of the Commission Disbursement Form?

The Commission Disbursement Form is used to instruct the Closing Agent on how to distribute the commission earned from a real estate transaction. It specifies the shares owed to both the Selling Office and the Listing Office, ensuring that all parties involved receive their appropriate compensation after the closing of the property sale.

Who is responsible for completing the form?

Both the Selling Office and the Listing Office have responsibilities in completing the form. Each office must fill out their respective sections completely, sign the form, and send the original to the Closing Agent while retaining a copy for their records. This ensures that the commission distribution is clear and documented.

What information is required on the form?

The form requires several key pieces of information. This includes the names of the Buyer and Seller, the Listing Number, the date of the transaction, the property address, and the Closing Agent's details. Additionally, it requires the commission amounts owed to both the Selling and Listing Offices, along with their respective addresses and authorized signatures.

What should be done after filling out the form?

After completing the form, the Selling Office and Listing Office must sign it in the designated spaces. Each office should then send one copy to the Closing Agent and retain a photocopy for their records. If requested, they must also send a copy to the Listing Office, ensuring all parties have access to the same information.

What happens if the form is not completed correctly?

If the form is not filled out completely or accurately, it may lead to delays in the disbursement of commissions. The Closing Agent may require additional information or clarification, which can slow down the process. Therefore, it is crucial for both offices to review the form carefully before submission.

Can the form be modified after submission?

Once the Commission Disbursement Form has been submitted to the Closing Agent, modifications may be challenging. If changes are necessary, it is advisable to communicate directly with the Closing Agent as soon as possible. They will provide guidance on how to proceed, which may involve submitting a new form or making adjustments as per their protocol.

Common mistakes

  1. Incomplete Information: Failing to fill out all required fields can lead to delays. Ensure all sections, including buyer, seller, property address, and listing number, are completed.

  2. Incorrect Signatures: Not signing in the designated spaces can invalidate the form. Both the selling and listing offices must provide authorized signatures.

  3. Missing Copies: Forgetting to send the required copies to the Closing Agent and retaining one for your records is a common oversight. Always keep a photocopy for your files.

  4. Failure to Specify Commission Shares: Not clearly stating the total commission owed and the respective shares for both offices can lead to confusion. Be precise in these amounts.

  5. Incorrect Closing Agent Information: Providing inaccurate details for the Closing Agent, such as their address, can result in miscommunication. Double-check this information before submission.

  6. Neglecting to Update Dates: Using an outdated date can create issues. Always ensure that today’s date is filled in correctly.

  7. Improperly Addressed Copies: Not addressing copies of the form correctly can lead to delays in processing. Make sure the addresses for the Selling Broker and Listing Broker are accurate.

  8. Failure to Send Upon Request: Forgetting to send a copy to the Listing Office upon request can cause friction. Stay organized and responsive to requests.

Documents used along the form

When processing real estate transactions, several forms and documents are commonly used alongside the Commission Disbursement form. Each of these documents serves a specific purpose and helps ensure that all parties involved are properly informed and protected. Below are some key documents that often accompany the Commission Disbursement form.

  • Closing Disclosure: This document outlines the final terms and costs associated with the mortgage loan. It provides a detailed account of all the financial aspects of the transaction, including loan terms, monthly payments, and closing costs. Both buyers and sellers receive this form to ensure transparency in the financial obligations of the transaction.
  • Listing Agreement: This is a contract between the property owner and the real estate agent or broker. It establishes the terms under which the agent will market and sell the property. The agreement typically includes details about the commission structure, duration of the listing, and responsibilities of both parties.
  • Purchase Agreement: Also known as a sales contract, this document outlines the terms of the sale between the buyer and seller. It includes important details such as the purchase price, contingencies, and closing date. This agreement is crucial for ensuring that both parties are on the same page regarding the sale.
  • Brokerage Agreement: This document formalizes the relationship between a real estate broker and their client, whether the client is a buyer or seller. It details the services to be provided by the broker, the commission structure, and the duration of the agreement. This helps clarify expectations and responsibilities for both the broker and the client.

Understanding these documents is essential for anyone involved in a real estate transaction. They help facilitate communication and ensure that all parties are aware of their rights and obligations. Properly completing and submitting these forms can lead to a smoother transaction process, benefiting everyone involved.

Similar forms

The Commission Disbursement Authorization form is similar to the Payment Authorization form. Both documents serve the purpose of instructing a third party, such as a financial institution or closing agent, to release funds. They require detailed information about the parties involved, including names and addresses, and must be signed by an authorized individual. This ensures that the correct amounts are distributed to the right entities, maintaining a clear record of the transaction.

Another document that shares similarities is the Escrow Disbursement Request form. Like the Commission Disbursement form, this document is used to direct the disbursement of funds held in escrow. It also requires the completion of specific details, such as the parties involved and the amounts to be disbursed. Signatures from authorized representatives are mandatory to validate the request, ensuring that the funds are released only with proper authorization.

The Closing Statement is another document that aligns closely with the Commission Disbursement form. This statement summarizes the financial aspects of a real estate transaction, including commissions owed to both the selling and listing offices. It provides a comprehensive overview of all fees and disbursements, ensuring transparency. While the Commission Disbursement form focuses on the specific distribution of commissions, the Closing Statement presents a broader financial picture.

The Listing Agreement is also similar in that it outlines the terms of the relationship between the seller and the listing agent. This document specifies the commission structure and how commissions will be disbursed upon closing. Like the Commission Disbursement form, it requires signatures from both parties to ensure mutual agreement on the terms, making it a foundational document in real estate transactions.

Lastly, the Seller’s Disclosure Statement shares a connection with the Commission Disbursement form. While it primarily informs potential buyers about the property’s condition, it indirectly affects commission disbursement by influencing the sale price and terms. Accurate disclosures can lead to smoother transactions, which in turn impacts how commissions are calculated and distributed. Both documents play crucial roles in the overall process of a real estate transaction.

Dos and Don'ts

When filling out the Commission Disbursement form, it is important to follow specific guidelines to ensure accuracy and compliance. Here are nine things to do and not do:

  • DO fill in all required fields completely.
  • DO sign the form in the designated space.
  • DO send one copy to the Closing Agent and keep one for your records.
  • DO provide a copy to the Listing Office if requested.
  • DO double-check the addresses listed for accuracy.
  • DON'T leave any fields blank.
  • DON'T forget to include the correct phone number for the Selling Licensee.
  • DON'T send the original form to the Closing Agent without retaining a photocopy.
  • DON'T neglect to specify the total commission and the Listing Office's share.

Adhering to these guidelines will facilitate a smooth disbursement process and help avoid any potential issues.

Misconceptions

There are several misconceptions surrounding the Commission Disbursement form that can lead to confusion for those involved in real estate transactions. Here are five common misunderstandings:

  • Only one copy of the form is needed. Many believe that submitting a single copy is sufficient. In reality, both the Selling Office and the Listing Office must retain a copy for their records, and one must be sent to the Closing Agent.
  • The Closing Agent decides the commission distribution. Some think that the Closing Agent has the authority to determine how the commission is divided. However, the form clearly outlines how the commission should be disbursed, based on the information provided by the Selling and Listing Offices.
  • Signatures are optional. It is a common misconception that signatures on the form are not necessary. In fact, both offices must sign the form to authorize the disbursement of funds.
  • The form can be filled out after the closing. Some individuals believe that they can complete the form after the closing has taken place. However, the form should be filled out completely before the closing to ensure proper disbursement.
  • All commission amounts are fixed and non-negotiable. There is a belief that commission amounts are set in stone. In truth, the commission can vary based on agreements between the parties involved, and this should be clearly stated on the form.

Key takeaways

When filling out and using the Commission Disbursement form, consider the following key takeaways:

  • Complete All Sections: Ensure that all required fields are filled out completely. Missing information can lead to delays in processing the commission.
  • Signatures Matter: Both the Selling Office and Listing Office must sign the form in the designated spaces. This signature is crucial for authorizing the disbursement.
  • Distribution of Copies: After filling out the form, send one copy to the Closing Agent and keep one for your records. Upon request, provide a copy to the Listing Office.
  • Clear Instructions for Disbursement: Clearly instruct the Closing Agent on how to disburse the commission. Specify the amounts and mailing addresses for both the Selling and Listing Offices.