Commission Disbursement Authorization (CDA) — Utah 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 Utah Edition: Every template was redrafted around the Utah Real Estate Licensing and Practices Act (Utah Code Title 61, Chapter 2f) and the Division of Real Estate's agency rules in Utah Admin. Code R162-2f, including the affirmative duties owed by every licensee, Utah's limited-agency regime (the Utah term for dual agency, which requires prior written informed consent of both parties), the Utah statute of frauds and its written-commission-agreement rule (Utah Code § 25-5-4), the Utah Uniform Electronic Transactions Act (Utah Code Title 46, Chapter 4), and the fact that Utah has no statutory seller disclosure form and no broker lien statute — so the seller disclosure is drafted as a comprehensive voluntary disclosure with the Utah Code § 57-1-37 stigmatized-property note, water rights/shares, HOA and geologic-hazard items, and commission enforcement is handled contractually. All citations are limited to those statutes; everything else is phrased generally for review by Utah counsel.