I Want to Bring a Co-Broke Check to Closing But We Are Not Holding Enough in Escrow to Pay Both Sides

Sometimes agents ask for co-broke checks to be written so that they can be brought to closing, even though we are not holding enough in escrow to pay the FULL co-broke check.  If the check request is processed correctly, we can process all of the checks on the transaction whereby part of the co-broker's payment will come from LAER, and then they will collect the remainder from the closing attorney.

For Example:

LAER is holding $15,000 in escrow
LAER Commission is $10,000
Co-broke Commission is $10,000

We can process this transaction immediately upon loop approval as follows: We would pay the LAER agent their entire commission.  That leaves LAER with $5,000, which we can write to the co-broke.  The co-broke would then get their remaining commission directly from the closing attorney ($5000 from LAER and $5000 from the closing attorney).  The LAER agent simply needs to let the closing attorney know that this is how the disbursement should be made.

IMPORTANT: If you would like checks processed in this matter, it's important to make sure the check request shows that we are waiting for ZERO additional funds at closing.  Whenever the check request shows that we are waiting for Additional Funds, our accounting department waits to process the check request until those Additional Funds are received.

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