"Pay at Close” (PAC) refers to a process where a real estate agent’s commission is disbursed at closing by the settlement agent (title company, escrow company, or closing attorney) rather than being paid later by the brokerage.
At Dalton Wade, Pay at Close is commonly used, but it must follow both state laws and Dalton Wade brokerage procedures.
⚠️ Dalton Wade Requirement:
All commission payments require a signed Commission Disbursement Authorization (CDA) from Dalton Wade for every transaction.
The CDA provides written authorization to the closing agent explaining how the commission should be disbursed.
Without a signed CDA:
The closing agent cannot legally disburse commission funds
The commission may instead be sent directly to Dalton Wade and processed after closing
Agents should ensure the CDA is submitted and approved before closing to avoid delays in payment within 14 days of closing.
Yes. In California, escrow can disburse commissions directly to agents if authorized by the broker.
This typically requires:
A Commission Disbursement Authorization (CDA), or
Broker disbursement instructions provided to escrow.
Even when paid at closing, the commission is legally considered brokerage compensation first.
Yes. Florida allows Pay at Close when authorized by the brokerage.
Florida law requires compensation for real estate services to be paid to the brokerage, but the title company may disburse funds directly to the agent if authorized by the broker.
At Dalton Wade, this authorization is provided through the Commission Disbursement Authorization (CDA).
Yes, with brokerage approval.
Georgia law requires commissions to be paid to the brokerage. However, closing attorneys may disburse funds directly to agents if the broker provides written authorization.
Dalton Wade provides this authorization through the signed CDA for the transaction.
Yes. Maryland allows commissions to be paid at closing by the settlement agent.
Maryland Senate Bill 425 allows licensed title insurance producers to disburse commissions directly to agents on behalf of the broker when authorized.
Dalton Wade uses the CDA to provide these instructions to the settlement agent.
Yes. In New York, commissions may be disbursed at closing by the closing attorney or title company.
Funds are typically paid from the seller’s proceeds. While commissions are owed to the brokerage, closing agents may distribute funds according to brokerage instructions.
Dalton Wade provides those instructions through the Commission Disbursement Authorization (CDA).
Yes, with brokerage authorization.
Oregon law generally requires commissions to be paid to the brokerage. However, escrow companies may disburse funds directly to agents when authorized by the brokerage.
The signed CDA provides those instructions to the escrow company.
Yes, with brokerage authorization.
Tennessee requires compensation for real estate services to flow through the brokerage, but closing attorneys may disburse funds directly to agents if the brokerage authorizes the payment.
Dalton Wade uses the CDA to authorize this disbursement.
Yes, with brokerage authorization.
Texas law requires commissions to be owed to the brokerage first. Title companies may disburse funds directly to agents when written instructions are provided by the broker.
Dalton Wade provides these instructions through the signed CDA.
Yes. In Virginia, settlement agents commonly distribute commission funds at closing.
Funds are usually paid from the seller’s proceeds, and the settlement company distributes the commission according to brokerage instructions.
The Dalton Wade CDA provides the authorization for this disbursement.
Yes, with brokerage authorization.
Washington law requires commissions to be paid to the brokerage, but escrow may disburse funds directly to agents if the managing broker authorizes it.
Dalton Wade provides this authorization through the Commission Disbursement Authorization (CDA).
Yes. In Washington DC, commissions may be paid at closing by the title company.
Disbursement must follow brokerage instructions, typically through a Commission Disbursement Authorization (CDA) signed by the broker.
No. Alabama requires all real estate compensation to be paid directly to the qualifying broker first.
Agents cannot receive commission directly from the closing agent. Funds must be paid to Dalton Wade and then distributed to the agent.
No. North Carolina law requires commissions to be paid to the brokerage firm, not directly to the individual agent.
The brokerage must receive the funds first and then compensate the agent.
No. South Carolina law requires that all real estate compensation be paid directly to the brokerage.
Agents cannot receive commissions directly from the closing agent. All commission funds must be sent to Dalton Wade first.
| State | Pay at Close Allowed |
|---|---|
| Alabama (AL) | ❌ No |
| California (CA) | Yes |
| Florida (FL) | Yes |
| Georgia (GA) | Yes |
| Maryland (MD) | Yes |
| New York (NY) | Yes |
| North Carolina (NC) | ❌ No |
| Oregon (OR) | Yes |
| South Carolina (SC) | ❌ No |
| Tennessee (TN) | Yes |
| Texas (TX) | Yes |
| Virginia (VA) | Yes |
| Washington (WA) | Yes |
| Washington DC (DC) | Yes |
For every Dalton Wade transaction, a signed Commission Disbursement Authorization (CDA) is required.
This document:
Authorizes the closing agent to distribute commission funds
Specifies how the commission should be split
Ensures the transaction complies with brokerage and state regulations
Agents should ensure the CDA is completed before closing to avoid delays in commission payment.