Definition: A fee collected before the related service has been completed or before a transaction closes, according to the agreement and applicable law.
Example
A client pays an agreed retainer before a broker begins a defined advisory assignment.
Keep the distinction clear
An advance fee is not automatically an earnest-money deposit or immediately earned revenue. The agreement, service, and applicable handling rules determine its treatment.
Related terms
Compensation · Deposit · Escrow Account
Keep studying
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References: California DRE: real estate glossary
Pronunciation (US): ad-VANS FEE (capitals show stress)
Pronunciation reference: Merriam-Webster
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