Well the 1st one was arguably just a "Customer". Now you're referring to these additional two as "Clients"; so your former Brokerage has a Contract to represent them; Right ? You wrote it ?

I'm still very interested in knowing how they FREEZE COMMISSIONS in Minnesota.

I'm sorry the other ones are customers too- no contracts. In MN all another broker has to do is contact the listing agents company and say there is a dispute on the commission and the listing company holds the commission until arbitration is over.
It's a real pain.

I offered the other broker $700 of the $3275 and he said no- so it appears we will be going to arbitration.

Severing ties with a Brokerage is like a Divorce. If you had any success at all, then you created Contractual Listing Agreements and Buyer Agency Agreements, all on behalf of the Brokerage . These are like the Children that were spawned during the Marriage and their Custody stays with the Brokerage. There is usually a goodly amount of emotion or hard feelings too.

If you had no success and just sat there at a desk and created no tangible product, the split can be nice and clean as you leave to go elsewhere. No Success = No Baggage.

In your case, you'll have to sort through each one of those entangling relationships to determine what will be equitable. It will be far less confusing if you stop using the word "Client" when it doesn't apply. Your now estranged former Brokerage may have been led to believe you're trying to take some of the Children away with you even when you are not because the terms "Customer" and "Client" are being used so interchangeably here (on this Forum); that I can only guess it is done just as liberally in your dealings with the now estranged former Brokerage. Be careful in your choice of words; and Good Luck in Arbitration !

I don't have any contracts in place with any of the customers I would like to continue to work with- just agency disclosures. To become a client they have to sign a contract. Most of these people are friends or referals, so I don't see why I should have to pay my former brokerage any commission on these future transactions and I hope I don't have to pay on this transaction either!!

Well that's good and you have nothing to fear from the Arbitration process (except a DELAY in being paid) if your estranged Brokerage has nothing to hang their hat on.

If you're still conducting business in the same Territory, then it's important not to burn bridges and to let this matter get resolved by others who are not directly involved. You will want to be doing a co-operative business with Agents at the old Brokerage for years to come.

Hopefully, this matter will be looked back on as just a passing misunderstanding. Meanwhile, don't set a precedent by offering more money if there never was a Client relationship with these "Customers". Let Arbitration take its course.

the old broker is trying to intimidate you. what he wrote is not particularly convincing, and is simply his opinion. what makes him think, at that time, that it was "likely" the buyer would make an offer? contrary to his opinion, customers DO transfer with agents...if they want to transfer with the agent. it is the customer's choice. brokers do not own customers, potential buyers, etc., unless they have a buyer's broker agreement. I would think that when the buyer signed the buyer's broker agreement with your new broker, that event alone is enough to show the intent of the buyer to abandon the former broker completely. the old broker likely is on weak ground.

no legal advice

I don't understand how a broker who was not party to the transaction can put a freeze on a commission. The listing broker owes you the commission per the MLS. Your old broker has to go to arbitration to get it from you.

There are rules on how these things are handled and it sounds like they are not being followed.

PS your old broker should get nothing. By their reasoning, everybody you ever talked to while you were there belongs to them.

sounds like it's a Realtor Code of Ethics requirement that applies only to Realtors. here's a good reason NOT to be a Realtor.

There is nothing in the code of ethics that would let a broker from another company, who is not a party to the transaction, put a freeze on my commission. In fact, the listing broker who is not paying the commission to the selling broker is breaking the code and the MLS rules.

The old broker must be pretty stupid in my opinion.......

Procuring cause is not just a beginning chain of events and many arbitration rulings have proven it.

People always check your IC agreements. If this old broker didn't have this situation spelled out in there IC agreement they don't have a leg to stand on.You know what they say about people that assume things........

State real estate commissions hold that if your now OR former agents weren't given a complete IC agreement and trained properly while they were at your brokerage then it is the fault of the broker and they will side with the agent.

A head broker can't just say that's just the way it is you have to disclose everything in writing and have the contracts,forms,and training manuals in place.

I don't see how they can freeze your commission. This simply is not allowed here as there are not part of the transaction closing.

Tell them to go pound sand.

Let us know what happens.

Briefly you don't own any commission to your old broker if you did not have a buyer’s representation agreement with the client while you were with them.

I don't think it has anything to do with being a Realtor. I think there are probably state laws stating that the commission must be frozen if there are any commission disputes from any party.

I would tell your former broker to pound sand also. I don't think they are due any commission from this transaction. There was no contract written with this old brokerage. There should be no commissions due to them.

And also pretty desperate. When times get tough, the desperate start interpreting the Rules in whatever way might put some money in their pockets.

This matter should have been resolved 10 weeks ago or so. Seeing this new response reminds me that we haven't heard "the rest of the Story" yet !

I just looked and we haven't heard from the OP since 5/2/08. Maybe we'll never know !