Commission Disbursement Authorization (CDA) — Illinois Edition Template

The Commission Disbursement Authorization is the short document that makes agents' money move. Signed by the broker (or an authorized manager), the CDA instructs the closing agent — title company, escrow officer, or closing attorney — how to disburse the brokerage's commission at closing: how much to the brokerage, and how much directly to the agent per their split. Because license law in every state requires commissions to be paid to the broker (not directly to a salesperson except as the broker directs), the CDA functions as the broker's written payment direction that lets closing agents cut agent checks at the table without violating that rule.

This 2-page template includes: transaction identification (property, closing date, file number, buyer/seller); the brokerage's total commission due with the calculation basis (percentage of sales price or flat fee); itemized disbursement instructions (brokerage company dollar, agent split, team member splits, outstanding fee deductions, referral fees payable to outside brokers); wiring/delivery instructions with payee details; the broker's authorization signature with license number; and a hold-harmless provision for the closing agent relying on the instruction. A second page provides a multi-agent/team split table for deals with multiple participating licensees.

Operationally, CDAs reduce E&O exposure by eliminating verbal disbursement instructions and creating an audit trail that matches the brokerage's commission ledger — important in states that audit trust-account and commission records. The included notes flag states where direct-to-agent disbursement at closing is restricted or where commission checks must pass through the brokerage first, in which case the CDA still documents the internal split instruction. Simple document, big operational value.

About this Illinois Edition: the template and its drafting notes are adapted for Illinois practice under the Real Estate License Act (225 ILCS 454) — dual agency is permitted only with written, informed consent obtained in the manner 225 ILCS 454/15-45 describes, with designated agency available as a brokerage-level alternative that keeps each client's representative loyal to one side; the Residential Real Property Disclosure Act (765 ILCS 77) requires sellers of most residential property (1-4 units) to complete and deliver the statutory disclosure report; and license-law provisions in 225 ILCS 454 govern team names, advertising, and how compensation may be earned and shared. Illinois-specific drafting notes accompany the template for review before use.