Commission Disbursement Authorization (CDA) — Indiana 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 Indiana Edition: Every form in this set is drafted around Indiana's single-license structure — since 2014 all licensees are "brokers" working under a "managing broker," and compensation, listings, and trust funds run through the broker company. Dual representation is handled under Indiana's limited-agency regime in IC 25-34.1-10, which permits it only with written consent containing specified disclosures; the consent form tracks those statements. The listing, buyer, referral, and disbursement forms are built to satisfy Indiana's statute of frauds (IC 32-21-1), including its writing requirement for commission agreements, and the electronic-signature provisions of IC 26-2-8. The seller disclosure template is a supplemental worksheet to the Commission-prescribed state form required by IC 32-21-5, with delivery before offer acceptance, actual-knowledge standard, and the IC 32-21-6 stigmatized-property rule noted. The commercial broker lien act (IC 32-28-12.5) is flagged as inapplicable to residential property. Not legal advice; have an Indiana-licensed attorney review before use.