By Raquel Salas
Special for El Inmobiliario
In the real estate sector, commissions are more than just numbers on a contract; they reflect the effort and passion of those dedicated to this noble profession. However, lately, I've sadly noticed that many agents seem to have lost sight of the true purpose of their work, making financial incentive the sole driving force behind their activity. This reality became evident after the publication of my article, "Breaking the Silence: The Urgent Need to Report Irregularities in Real Estate Development," where the comments revolved around commissions, revealing a concern that deserves to be addressed.
So here I am, ready to share my perspective on this topic, based on my experience from different angles: that of independent agents, real estate agencies, and developers. Each of these stakeholders has their own story to tell, and it's essential to listen to and learn from them.
From the corner of independent agents
One of the main obstacles independent agents face when trying to collect their commissions is a lack of due diligence. Many fail to properly vet their clients, which can result in an inability to demonstrate the necessary financial solvency to close a sale. Without this proof, both the agent and the client find themselves in a difficult situation. Furthermore, tax evasion is another factor to consider; some agents begin selling without registering with the Dominican Republic's Internal Revenue Service (DGII), which complicates the invoicing process and, consequently, the payment of commissions.
From the perspective of real estate agencies
In the real estate sector, the situation can be even more complex. Sometimes, internal processes are unclear, which can lead to payments being received on time but not transferred to agents. This can be due to a lack of funds to cover the company's fixed expenses, poor financial management, or, in some cases, a lack of empathy towards hardworking agents.
From the developers' perspective:
As for developers, failure to pay commissions can arise for various reasons. Often, this is due to incomplete due diligence, failure to receive invoices within the established deadlines, or a lack of timely response from the agent or the real estate company's accounting department. In the worst-case scenario, a lack of financial resources may be the reason behind this non-payment.
You might ask, "How is it possible that a construction company doesn't have the resources to pay commissions if that percentage comes from sales?" The answer is complex. It could be due to an bloated payroll, where a development company has more employees than it can afford, or to exorbitant infrastructure spending that isn't aligned with tangible economic growth. Those in the construction sector know what I'm talking about.
The solution
This is where education plays a crucial role. What should independent agents learn? It's vital that they understand the due diligence process, vet their clients before booking, and ensure they are compliant with the tax authorities. Timely invoicing is essential to avoid payment delays.
Real estate companies, for their part, must focus on a sound financial organization to prevent their employees' commissions from being used for corporate expenses. Having professional accounting support and providing follow-up to their advisors is essential for successful closings.
Finally, development companies must establish clear policies on payment dates, invoice receipt, and requirements for collecting commissions.
As you will notice, discussing non-payment of commissions is not something to be taken lightly, as there are many factors involved, in fact, many more than those discussed in this article.
A call to action
It's time for all stakeholders in the real estate sector to unite in a renewed commitment to transparency and ethics. Let's not allow commissions to become a taboo subject or a source of conflict. Each of us has the power to change this narrative.
It's time to act! Let's educate ourselves, collaborate, and build an environment where respect and fairness prevail. Together, we can transform the real estate sector into a space where effort and dedication are properly recognized and rewarded.
The author is a public relations specialist for Mystiq developments, CEO and founder of Positive Refocus and Real Estate Balance, director of the RP Media Group, an integrative coach for personal development, and a motivational speaker certified by John Maxwell Leadership. She is also the director of the "Time To Grow" training program for real estate agents and the author of the books "Before Saying Yes" and "Time for Me."«.
