How to get a commission advance without your broker's signature

As a real estate agent, you’re probably used to asking your broker for their blessing on any financial changes to your deals. If you want to adjust your commission for a client, you’ll usually have to get your broker to approve the new compensation agreement. If you want to negotiate a different commission split for yourself, only your broker can greenlight that change.

Managing your finances is a personal affair, but when it comes to getting a commission advance, your broker has to be on board, whether you like it or not. Even though you brought the deal and will get paid for your work, the commission technically belongs to your broker. Consequently, when you want a commission advance, you need your broker’s written permission before you can access your future commissions.

Why do you need your broker’s signature for a commission advance?

Real estate agents and associate brokers legally have to work under the supervision of a sponsoring broker. When a client signs an exclusive listing agreement or buyer agency agreement with a real estate agent, they’re really signing an agreement with that agent’s brokerage, and it’s the broker who’s legally owed the commission. At closing, commissions are disbursed to the brokerages, and from there, the brokers remit payment to their agents.

With a commission advance, an agent agrees to sell a portion of their commission to the advance company for a fee. At closing, that agent’s commission, along with the fee, is then paid directly to the advance company. Since commissions are owed to the broker and the advance company is repaid at closing from the commission, the broker is the one repaying the advance, rather than paying that amount to their agent. 

The better way to access pending commissions

When you want to get early access to your pending commissions, you shouldn’t have to ask your broker’s permission. Unlike a commission advance, which always involves your broker, Tongo empowers agents like you to take control of your commissions. Instead of selling your commission and paying high fees, Tongo works like a business line of credit that you can use when you want, how you want. It’s flexible and completely private, so your broker never has to know. Once you get your commission after closing, simply schedule a payment transfer from your bank account on the Tongo app. 

Conclusion

If you’re wondering how to get a commission advance without your broker’s signature, the short answer is that you can’t. Fortunately, Tongo created a solution that keeps your information private, so you can access your pending commissions like a line of credit — no broker approval needed. When you need to quick access to your pending commissions without overpaying or sacrificing your privacy, turn to Tongo.

TL; DR - A commission advance requires your broker to sign off before you can get early access to your commissions. Though you can’t get a commission advance without your broker’s signature, Tongo works like a line of credit for a real estate agents, allowing you to tap into pending commissions, when you want, without asking permission from your broker.