When working within a team, it is important for both Team Leaders and Team Members to understand how commissions, brokerage fees, and internal team splits are handled.

While teams may establish their own internal compensation structures, all commission payments must still follow Dalton Wade brokerage policies and state licensing requirements.

All Dalton Wade teams are required to document their internal commission structure within a signed Team Agreement Template that is kept on file with the brokerage. Teams must also be registered through the Team Registration & Approval Form before operating under a team structure.

How Dalton Wade’s Fee Model Works

Dalton Wade operates as a 100% commission brokerage with flat transaction fees.

This means:

• Agents retain their commission after the brokerage transaction fee is applied.

• There are no percentage-based brokerage commission splits taken by Dalton Wade.

• The brokerage transaction fee applies the same way whether an agent is working independently or as part of a team.

Depending on the agent’s plan, the transaction fee is:

• $79 per transaction (for agents on the $129/month plan), or

• $390 per transaction (for agents on the no-monthly-fee plan).

How Teams Handle Commission Splits

Within a team, the Team Leader and Team Members determine how commissions are divided between them.

Common team compensation structures may include:

• 50/50 split — often used when the Team Leader provides leads, systems, and administrative support.

• 60/40 or 70/30 split — where the Team Member retains a larger portion of the commission.

• Tiered splits — where commission percentages adjust based on production levels, lead source, or transaction role.

Dalton Wade does not set or control internal team splits. These arrangements are determined by the team and must be clearly documented in the team’s written agreement.

Commission Disbursement Process

All real estate commissions must flow through the brokerage and cannot be paid directly between licensees outside of brokerage processing.

Commission Disbursement Authorization (CDA)

The Commission Disbursement Authorization (CDA) determines how the commission will be distributed at closing.

The CDA must clearly specify:

• Dalton Wade brokerage transaction fee

• Team Leader commission amount

• Team Member commission amount

• Any referral fees or additional parties

Dalton Wade will disburse commission funds according to the instructions outlined on the approved CDA.

Responsibility for Accuracy

Team Leaders and agents should review the CDA carefully to ensure it reflects the correct internal team split before submission.

Once the CDA is approved by the brokerage compliance team, Dalton Wade processes commission payments according to the instructions provided.

Example Commission Distribution

Example transaction:

Purchase price: $400,000
Total commission earned: $12,000

Brokerage transaction fee: $79

Remaining commission: $11,921

If the team has agreed to a 50/50 split, the CDA may reflect:

• $5,960.50 to the Team Leader

• $5,960.50 to the Team Member

Dalton Wade would then process payment to each party according to the CDA.

Best Practices for Team Compensation

Maintain a Written Team Agreement

Teams should clearly document commission splits, lead policies, and expectations in their Team Agreement Template to avoid misunderstandings.

Define Lead Source Rules

Many teams structure commission splits differently depending on where the lead originated. For example:

• Team-generated leads

• Brokerage-generated leads

• Agent self-generated leads

Defining these rules in advance helps prevent disputes.

Review CDAs Carefully

Before submitting the CDA for brokerage approval, confirm that all commission distributions match the agreed-upon team split.

Communicate Expectations Clearly

Clear communication and written documentation help ensure that all team members understand how commissions are earned and distributed.