What Is the Difference Between Single-Check and Split-Check Closings?

Both methods describe how commission is paid at closing.

The difference is who handles the final payment to the agent.

Single-check means the brokerage handles it after closing.

Split-check means the closing agent handles it at closing, with broker approval.

In a single-check closing, all commission is paid to the brokerage.

The title company sends one payment to the broker for that side of the transaction.

After closing:

• The brokerage deposits the funds
• The brokerage calculates splits
• The brokerage pays the agent

This is the traditional way commission is handled

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At closing:

Seller → Title Company → Brokerage

After closing:

Brokerage → Agent

The agent gets paid after the brokerage processes the transaction.

In a split-check closing, the commission is divided and paid directly at the closing table.

Instead of sending one check to the brokerage, the title company issues separate payments based on instructions.

Those instructions come from the broker, not the agent.

At closing:

Seller → Title Company → Multiple parties

This can include:

• Brokerage
• Listing agent
• Buyer’s agent
• Referral parties

The closing agent distributes the funds according to a CDA.

A split-check closing only works if the broker authorizes it.

The CDA tells the title company:

• How to split the commission
• Who gets paid
• Where to send the money

Without a CDA, the title company will not release commission funds to individual agents.

The difference is not who earns the money.

The broker always earns the commission.

The difference is how the agent gets paid.

Single-check:

The brokerage pays the agent after closing

Split-check:

The title company pays the agent at closing, under broker instruction

No matter which method is used:

• The brokerage earns the commission
• The broker controls the funds
• The broker approves the payment

Split-check does not bypass the broker.

It only changes the timing and mechanics of payment.

Split-check closings are commonly used when:

• Agents want to be paid at closing
• There are multiple parties involved
• The brokerage wants faster disbursement

It simplifies the payout process while staying compliant.

Many agents think:

“In split-check, the title company pays me directly.”

That is not accurate.

The title company is following the broker’s instructions.

The broker is still controlling the payment.

Single-check closings send all commission to the brokerage first, then the brokerage pays the agent.

Split-check closings allow payment at closing, but only with the broker’s authorization through a CDA.