Glossary

Commission Disbursement Authorization

A document instructing the closing or escrow agent how to pay out real estate commission at closing.

Definition

A Commission Disbursement Authorization (CDA), sometimes called a commission disbursement form, is a document a brokerage provides to the closing or escrow agent that specifies how the real estate commission should be split and paid out at closing.

It typically identifies the transaction, the total commission, and the amount to be paid to the brokerage and, where applicable, directly to agents or teams.

Why it matters

The CDA is what actually moves money correctly at the closing table. An error in the split or the payee can delay funding or send the wrong amount to the wrong party, so accuracy matters.

When commission plans, splits, and overrides are resolved consistently per transaction, generating an accurate disbursement is far less error-prone than re-calculating splits in a spreadsheet at close.

Related terms

Realm resolves commission plans and splits automatically per transaction, so disbursement is accurate at close.

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Commission Disbursement Authorization | Real Estate Glossary | REALM