The commission: from the deal to the invoice, without money lost on the way

Where the money gets lost

Most agencies do not lose commissions because the client refuses to pay. They lose them because nobody reminded anyone in time, the invoice went to the wrong person, or the amount did not match the contract and payment stalled while it was sorted out.

The cause is almost always the same: the information lives in three places. The contract is in a folder, the deal is in the agent’s head, the invoice is in a separate program or at the accountant’s. None of the three knows about the other two.

• The agent closed the deal but did not tell the office.
• The office knows, but not whether the seller, the buyer or both pay.
• The invoice is issued, but nobody tracks whether it was paid.

Who pays and how much — settled in the agreement

The commission is agreed in the agency agreement: a percentage or a fixed amount, paid by the seller, the buyer or both. If another agency or an outside agent takes part in the deal, their share should be written down at that point too.

Collect the details at signing, when the client is in front of you and has a reason to give them. On invoice day they are already thinking about the renovation, not about your invoice.

When the invoice is issued

The moment comes from the agreement: if the commission is due at the deposit, the invoice is issued then; if it is due at the notary deed, after it. In Bulgaria, VAT-registered businesses issue the invoice within 5 days of the taxable event. Check with your accountant what the taxable event is for a specific deal — especially when payment comes in parts.

Two habits save the most trouble:

1. The invoice goes out right away, not “at the end of the month”. The further it is from the deal, the easier it is for the client to forget they owe it.
2. A mistake is fixed with a credit note. An issued invoice is not deleted or “re-issued on top”. A wrong amount or recipient is corrected with a credit or debit note against it.

Deposits, instalments and partial payments

In new builds the buyer rarely pays in one go. They pay a deposit, then instalments by construction stage. With a commission paid in parts the agency is in the same position: one deal, several payments spread over time.

This is where a spreadsheet stops working fast. An instalment that was due last month is invisible until someone sits down to check. So the payment schedule should show three things at a glance: what is paid, what is coming up and what is late.

A partial payment is still a payment. If the client paid half, the invoice is not “unpaid” — it is partly paid, and the remainder should be visible.

Cash and the office cash desk

Some payments come in cash — a deposit in hand, a fee, a security deposit. Every such payment needs a document the moment the money changes hands. Money taken “we’ll sort the paperwork later” is the first thing that never gets sorted.

• Every office keeps its own cash desk: what came in, what went out, with which document.
• The balance is worked out from the documents, not from a notebook someone writes in by hand.
• At the end of the day the cash desk is closed and the surplus goes to the bank.

Check the limits on cash payments and when a fiscal receipt is required with your accountant — the rules change and the fines are not small.

The accountant — once a month, without having to ask

The accountant should not have to chase the agency for documents. At the start of the month they should get everything for the previous one: sales, purchases, cash and VAT — in one file they can open without retyping.

A good habit is to mark every document as handed over. That way, next month nobody wonders whether the invoice from the 28th went or not.

What it looks like when everything is in one place

In OptiEstate the finance module is available on request and works together with the listings. The commission invoice is issued straight from the listing, contact, search or project card, and the system fills in who pays and what for. On the first invoice to a client it only asks for what is missing — the company or personal ID, address and representative.

• Documents sit on the Finance tab of the listing and of the client — next to the deal, not in a separate program.
• Offers go out with a link, the client accepts online, and an accepted offer becomes an invoice in one click.
• Payments in instalments show paid, upcoming and late; recurring invoices issue themselves.
• Every office has its own cash desk with vouchers, closing the day and bank deposits.
• VAT is by month and the accountant gets a file; every document is marked as handed over.

For developers the same starts from the buyer’s card: the unit is picked from theirs, and the invoice is for the next instalment — see how.

Frequently asked questions

When is a commission invoice issued?

When the commission becomes due under the agency agreement — for example at the deposit or at the notary deed. In Bulgaria, VAT-registered businesses issue the invoice within 5 days of the taxable event. Check with your accountant what the taxable event is for a specific deal.

Who gets the invoice if both the seller and the buyer pay?

Each for their own share — two separate invoices, each with the details of that payer. That is why it helps to write each side’s share into the agreement up front.

What do I do if the amount on the invoice is wrong?

An issued invoice is not deleted. The correction is made with a credit note (for a decrease) or a debit note (for an increase) against it.

Do I need a separate invoicing program?

Not necessarily. If invoices are issued from the same system that holds the listings and clients, nothing is retyped and every payment is visible next to the deal. In OptiEstate this is done by the finance module — available on request.