{"id":3045,"date":"2019-12-05T14:33:37","date_gmt":"2019-12-05T19:33:37","guid":{"rendered":"https:\/\/www.paperlesspipeline.com\/blog\/?p=3045"},"modified":"2026-03-20T13:52:29","modified_gmt":"2026-03-20T17:52:29","slug":"how-to-create-a-real-estate-commission-disbursement-authorization-cda","status":"publish","type":"post","link":"https:\/\/www.paperlesspipeline.com\/blog\/how-to-create-a-real-estate-commission-disbursement-authorization-cda","title":{"rendered":"How To Create A CDA: Real Estate Tips You Need To Know"},"content":{"rendered":"\n

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Commission is one of the main motivations behind real estate agents\u2019 and brokers\u2019 productivity. The commission earned on each closed real estate transaction is the driving force behind sustained growth.<\/p>\n\n\n\n

However, one report found that 35% of employees<\/a> would leave their business if they were paid incorrectly just once. It was also found that 22% of employees had been paid late.<\/p>\n\n\n\n

In order for your real estate agents to receive the right commission, you must complete a commission disbursement authorization (CDA) form.<\/p>\n\n\n\n

In this article, we\u2019ll explain step-by-step how to fill out a commission disbursement authorization form and how you can simplify this process for your brokerage.<\/p>\n\n\n\n

Accurate real estate commission tracking<\/a> makes CDAs easier because splits, fees, and payouts are already organized inside the transaction.<\/p>\n\n\n\n

What is a Commission Disbursement Authorization? <\/h4>\n\n\n\n
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A commission disbursement authorization (CDA) is a document that can be sent to an escrow company, title company, attorney, or whoever is handling the closing. <\/p>\n\n\n\n

Most state real estate boards allow you to present a CDA to the closing entity and have them disburse the funds.<\/p>\n\n\n\n

Commission disbursement authorization forms provide instructions on how the commission should be paid, acting as a payment request to the closing company. 
Using purpose-built commission management software<\/a> can help you create your CDA. However, you can also complete a standard commission disbursement authorization PDF.<\/p>\n\n\n\n

Why should I create Commission Disbursement Authorizations? <\/h4>\n\n\n\n
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Managing commission plans typically involves extensive paperwork and often leads to headaches for busy real estate professionals\u2014agents, admins, and brokers alike. <\/p>\n\n\n\n

Creating a CDA before closing and sending it to your closing company ahead of time is a great way to ensure commission payments are processed quickly to keep your agents happy.<\/p>\n\n\n\n

A CDA also allows agents to receive payment directly instead of the entire commission being funneled through your real estate brokerage, where it then needs to be deposited and distributed to your agents.<\/p>\n\n\n\n

How to Create a Commission Disbursement Authorization<\/h2>\n\n\n\n
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Follow these five steps to create a commission disbursement authorization:<\/p>\n\n\n\n

Step 1: Fill out the sale information and the commission overview<\/h3>\n\n\n\n

An accurate commission disbursement authorization should begin with high-level information.<\/p>\n\n\n\n

Your closing company will likely have much of this data available, and you need to clearly state which deal the commission applies to.<\/p>\n\n\n\n

Include fields that assist the closing company in identifying the specific deal associated with the CDA. You\u2019ll also need to provide transactional details such as buyer and seller information and purchase agreement specifics.<\/p>\n\n\n\n