Estate Agent Commission Finance
Don't let COVID-19 defeat you...
As an estate agent only gets their commission once a property sold has been transferred and registered, this can creating cash flow difficulties. The Deeds office may take months to sort out a transfer and during our current COVID-19 pandemic such transfer schedules are even more delayed.
Bayside Finance Solutions wishes to make the wait easier on our South African Estate Agents and offers Bridging Finance to estate Agents who have secured a property sale and require their commission prior to the transfer, and registration of a property.
Bayside Finance Solutions will advance up to 70% of the nett commission due to you (the agent), excluding VAT within 2 – 3 days of the Letter of Undertaking being issued by the transferring attorney.
What is Estate Agent Bridging Commission Finance and how do they work?
Estate Agent Commission Advance is the easiest way to describe this service. Basically, you as the agent are looking at receiving commission from a property sale before transfer of the property has been concluded. This service is provided by Bayside Finance Solutions at an agreed fee.
How does repayment on Estate Agent Commission Finance work?
Once a transaction is registered in the Deeds office, the registering attorney will request a settlement amount. This will appear on a statement and the following amounts reflected:
- The capital amount advanced ;
- The discounting fee;
- The discounting rate and;
- The period of the bridging finance advance.
What are the documents required to be approved for this advance?
The following processes and documents need to be available before applying for Agent Commission Bridging Finances:
- Verification of Ownership of the Property (internal Deeds office search will be completed);
- The Property is not subject to any Interdicts or Attachments;
- Signed Bond and Transfer Documents;
- The Purchase Price has been secured through Cash and Bank Guarantees;
- Letter of Undertaking is obtained from the Transferring Attorneys or the Attorney registering the Bond;
- The consent letter by the Principal Agent for the approval of the bridging finance.
Bayside Finance Solutions understand that waiting for your commission to be paid out can be frustrating especially when cash flow is tight. This delay can put unnecessary strain on you and we like to keep the application process as simple as possible.
No agreements will be made without the signatures from all parties!
Visit our FAQ page for more information on Bridging Finance
Request a Call
032 815 1114