Commission Disbursement Authorization (CDA) — Maryland 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 Maryland Edition: the template and its drafting notes are adapted for Maryland practice under the Maryland Real Estate Brokers Act, Md. Code, Bus. Occ. & Prof. Title 17, administered by the Maryland Real Estate Commission. Maryland permits dual agency only as broker-level dual agency with intra-company agents designated for buyer and seller, so the consent document in this edition is drafted as a Dual Agency / Intra-Company Agent Consent and pairs with the Commission's "Understanding Whom Real Estate Agents Represent" disclosure. The Seller Property Condition Disclosure is a supplemental instrument that references (and does not replace) the statutory Disclosure/Disclaimer statement required by Md. Code, Real Prop. § 10-702, and adds Maryland items such as private water and septic, pre-1978 rental lead registration, Chesapeake Bay Critical Area, and condominium/HOA resale disclosures. Electronic signatures are addressed under the Maryland Uniform Electronic Transactions Act, Md. Code, Com. Law Title 21. Not legal advice; have a Maryland-licensed attorney review before use.