For 'off the plan' projects, an agent’s commission is typically paid in two stages: once at the beginning and again upon completion.
Note: There is no limit to the number of stages (commission payouts) as part of a project.
Step by step
- Once the property is set as conditional/under offer, we enter details as per normal (representing the 1st stage of deposit/commission)
- Next, we receipt deposit monies, etc, into the trust (If using the sales trust module):
- In the "History" tab, you'll see the following:
- When the property is in unconditional status, you can then utilise the
Split Settlement (Part Commission Paid Out) button - Click this button to confirm you would like to initiate the split of commission payments, and Yes/Continue to proceed
The transaction (original life) is effectively being "settled" (ensuring commission details are reported for the franchise group's EOM systems)
Unlike Settlement, there’s no requirement for the trust ledger or advertising ledger to be zero, nor for advertising invoices to be fully paid. Any outstanding items are carried over to the property's new 'life'. - You'll then see the following success message
- After clicking "Proceed to Property", everything will look normal (the property is still at unconditional - awaiting Stage 2 of settlement). However, in the background, a new "life" is active
- Let's now jump back into the history tab to see the results
Note: Remembering there was a deposit (stage 1 life), this has been automatically transferred to the "stage 2" life: - Now you can "Modify Sale Details" and enter new details for Stage 2 - commission payable and revised settlement date. This leaves the original (stage 1 commission payout intact):
The Activity Report will intentionally exclude "settled" lives as part of a Stage 1 / Stage 2 project sale. This report will only use the "settlement" defined @ Stage 2
Commission-based reports (eg, Cashflow Forecast) will correctly consider the commission earned at Stage 1, Stage 2, etc