Real Estate Commission Invoice: Splits & Referrals

Quick answer: A real estate commission invoice is a bill for a commission earned on a sale, lease or referral. In most US states agents can't invoice clients directly: the brokerage bills the commission, often through a commission disbursement authorization (CDA) sent to title or escrow, then pays the agent their split. Referral fees are invoiced broker to broker under a written agreement.

Searches for a "real estate commission invoice template" usually come from one of four situations: a brokerage billing closing, a broker billing a referral fee, a commercial broker billing a landlord for a lease commission, or an agent who wants to invoice their own brokerage. The rules for each are different, and licensing law matters more here than in most industries. This guide explains each case, shows a full commission split with real numbers, and points out where you need your state's rules. Use the invoice generator with the Corporate template for referral and lease commission invoices.

Who can invoice for a real estate commission?

State licensing laws generally require that compensation for real estate activity flows through a broker. In Texas, for example, the Texas Real Estate Commission states that a sales agent may not accept compensation from anyone other than their sponsoring broker, or pay a commission except through that broker. Michigan, Nevada and many other states have similar rules, and some extend them explicitly to referral fees.

In practice that means:

• The brokerage is the party entitled to the commission under the listing or buyer agreement.
• The agent is paid by the brokerage under their independent contractor or employment agreement.
• Agents shouldn't send commission invoices to sellers, buyers or other brokerages in their own name. Doing so can breach license law.

Some brokerages ask agents to submit an internal "commission request" or invoice to the brokerage itself after closing, which is fine because it's agent to broker. Rules vary by state, so check with your state's real estate commission and your broker.

Four kinds of real estate commission invoice

Invoice	From	To	When
Commission disbursement authorization (CDA)	Brokerage	Title or escrow company	Before closing on a sale
Referral fee invoice	Referring brokerage	Closing brokerage	At or after closing
Commercial lease commission invoice	Brokerage	Landlord (or as agreed)	Often split between lease signing and occupancy
Agent commission request	Agent	Their own brokerage	After closing, if the brokerage requires it

Worked example: commission split on a home sale

A home sells for $485,000. Under the listing agreement, the seller pays the listing brokerage 2.75% for its side. The listing agent came from a referral, and the referring broker is owed 25% of the listing side. The agent is on a 70/30 split with their brokerage.

Step	Calculation	Amount
Listing-side commission	$485,000 × 2.75%	$13,337.50
Referral fee to referring brokerage	$13,337.50 × 25%	$3,334.38
Net commission after referral	$13,337.50 − $3,334.38	$10,003.12
Agent share (70%)	$10,003.12 × 70%	$7,002.18
Brokerage share (30%)	$10,003.12 − $7,002.18	$3,000.94

The figures check out: $3,334.38 + $7,002.18 + $3,000.94 = $13,337.50. (25% of $13,337.50 is $3,334.375, rounded to the nearest cent.) If the brokerage also charges a per-transaction fee, it comes out of the agent's share. Some referral agreements calculate the fee on the gross commission and others on the net, so read yours carefully.

The referral fee invoice

In this example, the referring brokerage sends an invoice like this to the listing brokerage:

Description	Amount
Referral fee per agreement dated 3 June 2026: 25% of listing-side commission on 14 Maple Ct, closed 20 October 2026 ($13,337.50 × 25%)	$3,334.38
Total due on receipt	$3,334.38

Include the property address, closing date, client name, the referral agreement date, both brokerages' license numbers and your W-9 if the paying brokerage doesn't have one on file. Many title companies will pay referral fees directly at closing if the referral is on the CDA, which avoids a separate invoice altogether.

What a CDA or commission demand shows

For sales, the closing brokerage typically sends the title or escrow officer a CDA listing:

• Property address, buyer and seller names, and the file or escrow number.
• Sale price and the commission rate or flat amount agreed.
• Gross commission and how it's split: referral fee, brokerage, agent, any transaction fees.
• Payee details for each amount (often the brokerage only, which then pays its agent).
• Signature of the managing or designated broker.

After the 2024 National Association of Realtors settlement, compensation offers are no longer advertised on MLS listings, and MLS participants working with buyers must have a written buyer agreement before touring. That makes the agreements, not the MLS, the source of the numbers on your CDA, so keep them with the file.

Commercial lease commission invoices

Commercial leasing is where real estate commission invoices look most like ordinary invoices. The landlord usually agrees in a listing or commission agreement to pay a commission based on the lease value, sometimes a percentage of the total base rent over the term. Payment is often split, for example half on lease signing and half when the tenant takes occupancy or starts paying rent. Each payment gets its own invoice from the brokerage to the landlord, referencing the tenant, premises, lease term and the commission agreement clause.

These invoices are commonly on Net 30 terms. Our guide to invoice payment terms explains how to phrase them, and the milestone payments guide helps if the commission is paid in several instalments.

When an agent invoices their own brokerage

Agents sometimes need to bill their brokerage directly, for example when the brokerage asks for a commission request after closing, or when a team leader pays team members. This is agent-to-broker or team-member-to-team-leader billing, which is generally allowed because the money still flows through the brokerage. A clear internal invoice includes:

• The agent's name, license number and the brokerage name.
• Property address, closing date and the client's name.
• The gross commission received by the brokerage for the agent's side.
• Each deduction: referral fee, brokerage split, transaction or technology fee, team split, any amount applied to an annual cap.
• The net amount payable to the agent.

Showing every deduction lets the agent reconcile their 1099 at year end and spot errors quickly. If you're on a cap model, add a running total toward the cap so you know when your split changes. Be cautious with commission advance companies: they pay part of a pending commission in exchange for a fee, which can be expensive, and your brokerage may need to approve the arrangement.

Taxes, 1099s and record keeping

• 1099 reporting. Brokerages generally report commissions paid to independent contractor agents on Form 1099-NEC, and referral fees paid to other brokerages may be reportable too unless the payee is a corporation. The reporting threshold rose to $2,000 for payments made from 2026; confirm current rules on the IRS website. See W-9 vs 1099.
• Self-employment tax. Agents paid as contractors pay their own self-employment tax and may need quarterly estimated payments.
• Sales tax. Real estate commissions generally aren't subject to state sales tax, though a few states apply a gross receipts or general excise tax to services. Check your state.
• Records. Keep the listing agreement, buyer agreement, referral agreement, CDA and settlement statement together. Brokerages are usually required to keep transaction records for a set number of years under state law.

This article is general information about US practice, not legal or tax advice. Licensing and compensation rules are set state by state, so confirm with your state real estate commission, your broker and a tax professional.

Common commission invoicing mistakes

• An agent invoicing in their own name instead of through the brokerage.
• Referral fees calculated on the wrong base (gross vs net of brokerage fees).
• Referral fees paid to unlicensed people, which many states prohibit.
• No agreement on file. A referral fee without a written agreement is hard to collect.

Agents who do non-licensed side work, such as staging consultations or marketing services for other agents, can invoice for that like any contractor. The consulting invoice template and independent contractor invoice guide cover that. If you manage rentals too, the rent invoice template covers monthly tenant billing, and moving company invoices are useful to understand if you recommend movers to clients.

Create a referral or lease commission invoice

Open the Corporate template in the invoice generator, add your brokerage name and license number, show the commission calculation in the line description, reference the agreement date, and download the PDF. Attach the agreement and send it to the paying broker or landlord the day the deal closes.