Automate your percent-based commission fees

With Paperless Pipeline and the Commission Module, you can streamline your entire real estate transaction workflow from new deal to net payable. It’s simple, powerful, and saves time.

And now, with the February 2021 feature release, managing real estate commissions just got even easier with customizable Percent-based Fees.

What’s a percent-based fee?

Real estate commission calculations are done differently across the United States and Canada. In fact, the way it’s done from one real estate company to another depends on more than just geography.

While each specific state certainly plays a role in the way a real estate commission is calculated, the MLS, parent or franchise company, and other factors also have a significant role.

For example:

  • MLS fees such as the FMLS fee of .12%
  • Agent fees such as a 1.5% transaction fee
  • Client fees such as a 4% transaction tax

In many ways, percent-based fees are fairly easy to account for. It’s simply just a percent of a number. Accounting for it in Paperless Pipeline has always been just as easy: Create an FMLS fee and then add that fee to remove it from an agent’s commission.

However, the reality is that the real calculations are not quite as straightforward because they’re based on different numbers and different stages of a commission calculation.

For example, the FMLS fee is based on the sale price while an Agent Fee may be based on the distributable commission. And these are just two of many examples. Percentage-based fees can be based on:

  • Sale price
  • Sale price after referrals or concessions
  • Gross commission after franchise fee
  • Distributable commission
  • Agent or broker commission

Here’s the good news: You can easily manage and automate all of your percent-based commission fees and instantly generate CDAs with Paperless Pipeline and the Commission Module.

How to manage percent-based fees with Paperless Pipeline

Agent Fees, Client Fees, and Deductions can now be based on a pre-defined percentage.

Set up your commission fees based on a percent of any commission basis.

When setting up fees based on a percentage, specify the default amount (if applicable) along with the desired percentage basis for each fee (e.g., sale price, gross commission, distributable commission, etc). When managing commissions on transactions, your specified basis will be used to calculate the fee amount.