When should I consider taking a commission advance?
When short term gaps in cash flow create challenges, a commission advance can help bridge that gap, with a very fast and straightforward application and approval process.
Who is eligible for commission advances?
Real estate agents and brokers licensed in the United States. Certain restrictions or limitations may apply to licensees in certain locations including Ohio and Oregon.
Can I get an advance on an active listing if I don’t have anything pending?
Advances on active listings are approved for agents on a selective basis. Approval is based on underwriting of agent’s transaction history and the details of the active listing. Active listing advance is not available to broker/owners or qualifying brokers. Please contact us by phone, text or email for more details. Terms of the listing advance require that you must provide us your next pending contract, whether on this listing or any other contract that is signed and pending. This includes both listings and contracts where you represent the buyer. You must provide us the contract immediately following execution and payment of the escrow deposit. While you have a listing advance outstanding with us, you are restricted from obtaining a commission advance from any advance company on any contract or listing.
Can I get an advance if I have an advance or balance outstanding with another advance company?
We require an exclusive relationship after we fund an advance. There is a question on our application that asks if you have an advance or balance currently outstanding with another advance company on any property. In certain instances, we are able to make an exception and approve a new advance if you have an open advance balance elsewhere. However, please note our restriction on obtaining an advance form another company on any property while our advance remains outstanding.
What is the maximum amount that Residential Advance will fund?
Advances are evaluated based on the merits of each application. As a general rule, advances are limited to $25,000 maximum cash advance. First time customers may be a lower maximum. Exceptions for higher amounts may be considered in certain circumstances.
How is the advance funded?
Immediately upon approval, funds will be wired to your bank account. Some bank accounts do not accept incoming wires. It is YOUR responsibility to confirm that your bank account accepts incoming domestic wire transfers. If a wire is rejected by your banking institution, it will likely delay your receipt of funds as we must wait for funds to be returned to us before we can resend.
What is the Holdback Reserve?
The holdback reserve is not a fee. It is an amount that is included in the total assigned for repayment, serving as a buffer (like a security deposit) which is immediately returned to your bank account upon timely closing and repayment, usually the same day we receive payment. In the event the closing is delayed beyond the end of the grace period, the holdback is applied to cover any accrued extension fees without needing to revise the repayment amount or have anything additional assigned.
How long does it take to receive my commission advance?
Typically, advances are approved and funded the same day we receive the application. Applications received mid to late afternoon may be next day approval and funding.
Are there any restrictions regarding the type of contract/property?
As a general rule, contracts must be for a residential resale or new construction. We will evaluate commercial property contracts on a case by case basis. If you would like us to consider a commercial or raw land contract, please email a copy of the executed contract with any details that may be helpful for us to evaluate, or call to discuss.
How far out is the longest closing that can qualify for an advance?
Generally, we look for closings within 90 days or sooner. The fee is based, in part, on the length of time from advance funding to the expected closing date. For new construction homes, we will consider contracts with closings as far out as 180 days. If you have a long term closing on a new build home, please call to discuss structure and fees.
What happens if the assigned contract cancels?
If the original contract assigned for repayment cancels, you are required to provide us your very next pending contract as soon as you have one pending. You can simply email the contact to us along with details of your net commission and point of contact for the title or closing company. You do not have to complete an online application. If you do not have a pending contract, you are welcome to repay the advance directly using other funds. Repayment prior to the end of the grace period will avoid additional extension fees.
Does my broker need to be involved?
Yes, the qualifying broker must always acknowledge and sign the authorization for the advance. If you are the qualifying broker, we require that repayment come to us directly from the title company / escrow company or closing attorney.
Does a commission advance affect my credit rating?
We do not do credit checks and do not report anything to the credit rating agencies.