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Frequently Asked Questions About Commission Advance

Learn More Frequently Asked Questions

Q

What Is The Purpose Of A Jca Commission Advance?

A

A JCA Commission Advance is a service that provides you with your commission earnings BEFORE a sale is closed. The aim is to assist you in managing your business expenses that otherwise would be dampened by waiting for the actual closing date to receive your commission.

JCA offers a speedy and friendly service, assuring you that you’ll receive an advance on your commission whenever the need arises.

Q

What Expenses Would Benefit A Commission Advance?

A

Here are a few expenses that a Commission Advance would assist a real estate agent or broker with:

  • Business Overhead Expenses
  • Payroll Costs
  • Monthly MLS Access Fees
  • Yearly Real Estate Association Fees
  • Business Taxes
  • Marketing and Advertising Costs
  • Gratitude and Closing Gifts
  • Continuing Education Course Fees
Q

Is It Safe To Share My Personal Details With Jca?

A

JCA takes customer privacy very seriously. We have a stringent privacy policy in place where we will not share any customer information and communications with third parties. All information we receive is managed through secure channels.

Q

How Much Does It Cost To Set Up Commission Advances?

A

JCA will charge you a service fee that is reflective of the commission amount you have requested. The cost will also be calculated based on the number of days repayment is expected (the time from JCA application approval until estimated closing date).

Q

What Are The Requirements To Join Jca?

A

Here’s what you need to get approved for a Commission Advance from JCA:

  • You must have a valid real estate license that allows you to sell property in your area.
  • You need to provide a contract that shows a pending sale that is scheduled to close within 120 days.
  • JCA will transfer the Commission Advance funds via bank transfer, so you will need to have a valid bank account.
  • At this moment, JCA can only offer a Commission Advance to residential estate agents. We do not offer this service to real estate brokers.
  • However, you can still get a Commission Advance if you work for a brokerage that employs at least 20 agents.
Q

What Percentage Of My Sales Commission Can I Get In My Advance From Jca?

A

You will get 100% of your net commission earnings (after splits with partners or your office). The JCA service charges will be taken straight from your Commission Advance, so there are no upfront payments expected from you.

Also, unlike most of our competitors, we do not put a cap on the amount you can request for your Commission Advance. On top of that, JCA allows you to open multiple Commission Advance agreements at the same time.

Q

Can I File Commission Advance Costs As A Tax Deductible Business Expense?

A

All business expenses are generally tax deductible. As the Commission Advance funds received from JCA are intended to cover expenses of your real estate venture, the costs incurred can be filed as a business expense.

Q

What Payment Method Does Jca Use To Issue Commission Advances?

A

JCA will wire the advance to your bank account—so make sure you have given the correct bank account details.

Q

Is There A Cut-off Time For Receiving Same Day Advance Funding?

A

Yes. Commission Advance applications have to be submitted by 4PM (Central Time), Monday to Friday, to be approved for same day wire transfers.

Applications received by JCA after the cut-off time or during the weekend, will be assessed on the next business day.

Q

How Can I Get A Commission Advance?

A

Firstly, you will need to create a FREE JCA account. Then you will need to provide details of the sales contract of which will be used to back your application for a Commission Advance. The contact info of the settlement company nominated to handle the closing sale must also be provided.

After completing the application, you will receive a digital JCA agreement via DocuSign. The agreement will be forwarded to your broker requesting an electronic signature.

Only once the documents are signed and returned to JCA will your application be considered. If for any reason we are unable to approve your application, a dedicated account manager will get in touch with you.

Q

Can Broker Agents Also Apply For A Jca Commission Advance?

A

Yes. Broker agents are also welcome to apply for a JCA advance. However, there are certain restrictions imposed on broker agents such as the advance amount they wish to receive.

Q

How Do I Arrange Repayments On My Commission Advance?

A

Repayment plans are arranged during the initial application process by authorizing the settlement company to pay the agent’s share of the commission (held in Escrow) directly to JCA once the sale has closed.

Another option is for the broker company to make repayments on behalf of the agent when the sale closes.

Q

Are Broker Agents Eligible For A Jca Commission Advance?

A

Yes. Broker agents can also request a Commission Advance. The difference is that they will be limited to the type of advance they can request and the amount they can receive.

Q

How Do I Qualify For A Commission Advance?

A

You will need to submit an application online, send us a copy of your purchase agreement signed by the buyer and the seller, a copy of your driver’s license and your MLS production for the last 12 months. You also need to be an active and licensed real estate agent in good standing. After we review your application our customer service team will inform you of the status of your application.

Q

Why Would I Want A Commission Advance?

A

If you’re in the real estate business, then you understand that funds are not always guaranteed when you need it. JCA can relieve your financial uncertainty with a Commission Advance. Whether your intention is to secure a stable income or even if you require capital for an upcoming project.

Q

Does The Jca Commission Advance Cover All Types Of Real Estate Contracts?

A

JCA accepts contracts associated with single-family homes that include both townhouses and condos. JCA also offers a Commission Advance on short sale approvals, real estate owned property and even new builds.

Q

What If I Get A Commission Advance But The Property Sale Fails To Close?

A

JCA Commission Advances are protected by our exclusive substitution program. So should the closing of a sale agreement fall through, the risk of financial losses will be covered for both - the real estate agent and JCA.

How it works: When the initial contract used to receive the Commission Advance is no longer valid, JCA will instead back your advance with another of your contracts that’s waiting to close.

Q

Does Jca Inform The Buyer And Seller About My Commission Advance Agreement?

A

JCA will never contact the buyer or seller associated with your sales agreement. Your Commission Advance is only between yourself and JCA.

Q

Will My Credit Score Affect My Chances Of Getting Approved?

A

No. You can still get approved for a Commission Advance even with a poor credit rating because JCA does not check your credit history. Instead, JCA makes a decision based on your overall performance and the pending sales contract.

Q

What If I Wanted To Sell Just A Fraction Of My Sales Commission To Jca?

A

Yes. You are welcome to sell us a portion or even 100% of your net commission. As our service fees are firmly based on the commission amount purchased and the date of closing.

Q

Will My Personal Data Be Sold Or Shared With Third Parties?

A

JCA has a very strict Privacy Policy. We will not, for any reason, disclose your personal information to any third parties.

Q

Why Would I Want An Advance Of My Commissions?

A

Even the top performing real estate agents experience highs and lows when it comes to cash flow. Unfortunately, in the real estate business, commissions do not always come when you need them.

Commission Advances are the solution to managing the dry spells by offering you the opportunity to access your commission not when the sale closes, but when you need it.

Q

Is There A Penalty For Late Repayments On Commission Advances As A Result Of A Delayed Sales Closing?

A

JCA understands that there is always the chance of closing delays. That is why, with the JCA Commission Advance, you will be given a further 20 days after the projected closing date to make repayments.

Q

How Long Do I Have To Wait To Receive A Commission Advance From Jca?

A

JCA will first need to approve your application for a Commission Advance. Provided that your sales agreement has been signed and certified by a settlement company, then you will have your advance funds wired to your bank account within 1 hour.

If you have requested to receive your advance through a Credit Union, then it may take up to 1 business day for funds to appear in your account.

JCA will only transfer advance funds during office hours, Monday to Friday.

Q

How Do I Pay Jca Back For My Advance?

A

The whole repayment process is automated. So provided that your broker gives permission to the settlement company to distribute JCA’s share of the commission, then JCA will be repaid on the closing date of your sale.

Q

How Do I Prevent The Buyer Or Seller From Knowing About My Request For A Commission Advance?

A

JCA has no reason to contact either the buyer or seller in your sales contract. They do not affect the application process, so we will never contact them.

Q

Why Is The Broker Needed To Sign An Agents Commission Advance Agreement?

A

Any sales commissions earned by a real estate agent operating on behalf of a broker actually belong to the brokerage company. Therefore, agents would first need to get approval from their broker before applying for a Commission Advance.

The JCA agreement that the broker signs will authorize any sale of the agents share of the commission. The agents share will be the commission amount determined after splits and payments owed to the brokerage.

Q

What Is The Benefit Of A Commission Advance For Agents Of A Brokerage?

A

The main idea behind a commission advance is to assist with the financial uncertainties that comes along with the role of a real estate agent. On average, agents reap the benefits of JCA at least 2 or 3 times a year whenever they struggle to cover additional business expenses.

If you are partnered with JCA, you will be able to rest assured that your agents receive their commissions consistently. Allowing them stay focused and assert their full attention on their next sales prospects.

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