A commission disbursement authorization is a form that must be completed to receive a commission. Commission disbursement authorization forms typically include information on the property, the sales price, the commission amounts, and the relevant contacts in a deal. It may also include checklists and required document attachments that a brokerage requires on each home sale.
CDA is the commonly used acronym for commission disbursement authorization.
A brokerage has limitations over what it can tell an independent contractor agent to do. But the commission disbursement authorization is one step where a process is enforced or an agent won’t get paid. As a result, many brokerages use this stage to enforce regulatory compliance and collect documents.