As a real estate agent, securing your commission promptly is crucial for your business cash flow and financial stability. This guide provides actionable advice and a free template to help you create professional invoices that ensure you get paid without delay.
For sales commissions, specify 'Sale Commission - [Property Address]', the 'Sale Price', and your 'Commission Rate' (e.g., 2.5% of sale price), leading to the 'Commission Amount'. If you charge for specific services like marketing packages, buyer consultation fees, or administrative fees, list them separately with their agreed-upon costs. Transparency prevents disputes.
For sale commissions, explicitly state 'Due Upon Sale Completion' or 'Net-7 days post-closing' as the payment term. For upfront services, 'Net-14' or 'Net-30' might apply. Clearly define any late payment penalties (e.g., '1.5% per month on overdue balances') to encourage prompt payment, especially when invoicing brokerage firms or direct clients.
While full commissions are typically paid post-closing, consider an upfront retainer for exclusive buyer's agent agreements. This non-refundable fee can be credited towards the final commission, securing client commitment. For property management services, an initial setup fee or the first month's management fee is often due upon contract signing, ensuring early commitment and covering initial costs.
Always include your ABN (Australia), GST/VAT number (if applicable), or relevant tax ID on your invoice. For independent contractor agents invoicing a brokerage, remind them that *you* are responsible for your own income tax and superannuation/social security contributions. Clarify that commission amounts are subject to applicable local, state, or national taxes.
Send your invoice immediately upon closing or service completion – ideally the same day. Automate polite payment reminders before and shortly after the due date. For larger brokerages with long payment cycles, consider negotiating an early payment discount (e.g., 1% off if paid within 3 business days) to incentivize quicker processing. Follow up proactively with a phone call if payment is overdue.
Fill it in, watch it build live, and download a clean PDF invoice in under a minute. No signup to try, no watermark.
Create my invoice free →For sales, send your invoice immediately after closing, ideally on the same day the funds are transferred. For other services like consultations or marketing packages, send it upon completion of the service or as stipulated in your service agreement.
Immediately refer to your signed agency agreement, listing contract, or buyer's representation agreement. Ensure your invoice precisely matches the terms agreed upon in writing to resolve disputes quickly. Clear documentation and communication upfront are your best defense.
While not always a legal requirement specifically for *invoices* (it's crucial on contracts), including your license number and your brokerage details adds professionalism and transparency. It verifies your legitimate status as a licensed agent. Always check your local real estate board regulations for specific mandates.
Want branded invoice, quote, contract and proposal templates you own forever? Browse our Freelancer & Business Kits →