The term “CAP” refers to a benefit offered by few brokerages, putting a limit on the total amount of brokerage commission collected from an agent in a given period. Our compensation terms specify that our brokerage collects a 10% commission fee (90/10 split) from each transaction, totaling no more than $15,000 per year; this maximum amount of $10,000 collected is the “CAP”. A year is calculated individually for each agent from their start date with the company through their yearly anniversary, and then on the anniversary each year thereafter.
This benefit is so desired because it doesn’t matter how many units are sold or at what point in the year the limit is reached – once you pay $10,000 to the brokerage through the 10% commission split, we will not collect another dime in commission for the rest of that contractual year.