|
|
#343084 - 07/05/10 09:50 PM
Former Principal Broker refuses to pay my commision..
|
Junior Member
Registered: 07/03/10
Posts: 7
Loc: Washington,Clark
|
Hi everyone, i have an outgoing issue with my former broker who decided on his own that he deserves half of my commission for himself. Here is the story. I was hired by the firm on 2/11/2009 , it is a franchise of a national company. My contract was for one year, but after the contract expired i continued working under the same terms( i was paying same fees and etc.)The day after my contract expired i was hired by a seller to sell her home. I found the buyer during one of my open houses and i put the deal pending. I gave up 2.5 percent of the commission so i can make everyone happy and so i can put this deal together. I represented both sides. I placed the status pending on this deal and i was present at home inspection as well. I drew up the home inspection request form and that is when i email my broker advising him that I'm having extremely hard time communicating with the seller and I'm giving up on her so i asked for help. I told him the deal is pending , home inspection perform all what was left is the appraisal and closing. He stepped in and never asked for any compensation from me, never asked me for a referral fee. He did tell me clearly to stay with the buyer and he will communicate with seller ,which i did. After a week me and my broker had an argument and he fired me. The co-owner of the firm is my friend ,she came over to my house to assure me that i will receive my commission check per agreement split is 80/20. Just prior closing i email title company for broker's demand and i didn't see my name on it so i called the former broker to make sure I'm getting compensated. Well he say that he had decided to keep 40% of my 80% split. He refuses to meet with me to explain how much work has he done after the deal was handed pending to him. He is claiming that he had done a lot of work, but refuses to share with me. He said that he "rescued the deal". Now i had to the franchise corporate and i told them what I'm facing and that i didn't want us to go to court. I told them that I'm willing to offer him 20% referral fee ,but he didn't agree. It gets even better. After closing he sends me 20% of my 80% and he says that he is keeping 20 % for him and for the rest since i already threatened to go to arbitration i should proceed with it. My commission is hostage with this very bitter former broker. Anyone out there faced anything like this? Thank you for your help in advance.
|
|
Top
|
|
|
|
|
#343085 - 07/05/10 09:57 PM
Former Principal Broker refuses to pay my commission
|
Junior Member
Registered: 07/03/10
Posts: 7
Loc: Washington,Clark
|
Hi everyone, i have an outgoing issue with my former broker who decided on his own that he deserves half of my commission for himself. Here is the story. I was hired by the firm on 2/11/2009 , it is a franchise of a national company. My contract was for one year, but after the contract expired i continued working under the same terms( i was paying same fees and etc.)The day after my contract expired i was hired by a seller to sell her home. I found the buyer during one of my open houses and i put the deal pending. I gave up 2.5 percent of the commission so i can make everyone happy and so i can put this deal together. I represented both sides. I placed the status pending on this deal and i was present at home inspection as well. I drew up the home inspection request form and that is when i email my broker advising him that I'm having extremely hard time communicating with the seller and I'm giving up on her so i asked for help. I told him the deal is pending , home inspection perform all what was left is the appraisal and closing. He stepped in and never asked for any compensation from me, never asked me for a referral fee. He did tell me clearly to stay with the buyer and he will communicate with seller ,which i did. After a week me and my broker had an argument and he fired me. The co-owner of the firm is my friend ,she came over to my house to assure me that i will receive my commission check per agreement split is 80/20. Just prior closing i email title company for broker's demand and i didn't see my name on it so i called the former broker to make sure I'm getting compensated. Well he say that he had decided to keep 40% of my 80% split. He refuses to meet with me to explain how much work has he done after the deal was handed pending to him. He is claiming that he had done a lot of work, but refuses to share with me. He said that he "rescued the deal". Now i had to the franchise corporate and i told them what I'm facing and that i didn't want us to go to court. I told them that I'm willing to offer him 20% referral fee ,but he didn't agree. It gets even better. After closing he sends me 20% of my 80% and he says that he is keeping 20 % for him and for the rest since i already threatened to go to arbitration i should proceed with it. My commission is hostage with this very bitter former broker. Anyone out there faced anything like this? Thank you for your help in advance.
|
|
Top
|
|
|
|
|
#343103 - 07/06/10 07:39 AM
Re: Former Principal Broker refuses to pay my commision..
[Re: dessi t.]
|
Veteran Member
Registered: 01/19/06
Posts: 994
Loc: New Jersey
|
Hi everyone, i have an outgoing issue with my former broker who decided on his own that he deserves half of my commission for himself. Here is the story. I was hired by the firm on 2/11/2009 , it is a franchise of a national company. My contract was for one year, but after the contract expired i continued working under the same terms( i was paying same fees and etc.)The day after my contract expired i was hired by a seller to sell her home. I found the buyer during one of my open houses and i put the deal pending. I gave up 2.5 percent of the commission so i can make everyone happy and so i can put this deal together. I represented both sides. I placed the status pending on this deal and i was present at home inspection as well. I drew up the home inspection request form and that is when i email my broker advising him that I'm having extremely hard time communicating with the seller and I'm giving up on her so i asked for help. I told him the deal is pending , home inspection perform all what was left is the appraisal and closing. He stepped in and never asked for any compensation from me, never asked me for a referral fee. He did tell me clearly to stay with the buyer and he will communicate with seller ,which i did. After a week me and my broker had an argument and he fired me. The co-owner of the firm is my friend ,she came over to my house to assure me that i will receive my commission check per agreement split is 80/20. Just prior closing i email title company for broker's demand and i didn't see my name on it so i called the former broker to make sure I'm getting compensated. Well he say that he had decided to keep 40% of my 80% split. He refuses to meet with me to explain how much work has he done after the deal was handed pending to him. He is claiming that he had done a lot of work, but refuses to share with me. He said that he "rescued the deal". Now i had to the franchise corporate and i told them what I'm facing and that i didn't want us to go to court. I told them that I'm willing to offer him 20% referral fee ,but he didn't agree. It gets even better. After closing he sends me 20% of my 80% and he says that he is keeping 20 % for him and for the rest since i already threatened to go to arbitration i should proceed with it. My commission is hostage with this very bitter former broker. Anyone out there faced anything like this? Thank you for your help in advance. Actually I think your broker is lucky to be rid of you. First you represent both sides which is unethical. I don't care if it's allowed, or common, or what. You should have referred the buyer out to begin with. Second, you slash your commission 2.5%. Ridiculous. Your attempting to represent both sides, with twice the work and twice the liability yet taking money away from your broker and yourself so you can "make someone happy", whatever that means. Then, you let your contract expire in the first place. It seems like you run a very sloppy business and are the type of agent who will bounce from firm to firm. Consider the lost commission a lesson learned. And in the next firm, stop doing dual agencies and stop giving money away. It's bad for the profession and bad for your reputation.
|
|
Top
|
|
|
|
|
#343105 - 07/06/10 08:47 AM
Re: Former Principal Broker refuses to pay my commission
[Re: dessi t.]
|
Veteran Member
Registered: 01/03/05
Posts: 538
Loc: Ontario, Canada
|
Locally, It is my understanding that the brokerage firm owns all listings and is entitled to all agreed compensation in relation to the successful completion of a real estate transaction.
For clarifacation, where you state that the seller hired you, would appear to be legally inaccurate as the seller actually hired the brokerage firm, which you simply represented at that point in time.
Locally, brokerage firms may stipulate in their policy, that if a sales representative unilaterally decides to reduce the commission due on the successful completion of a transaction, that the reduction in question is taken from the representatives portion of the commission.
(In other words you cannot give away any part of the brokerage firms portion of the commission, only your own)
Locally there is generally policy that unless there is an express agreement to the contrary, it shall be assumed that two representatives working together in the same transaction will share the compensation earned equally on a 50/50 basis.
Further, that in the event that there is an express agreement between the representatives then all such agreements are subject to the approval of the principal broker of the brokerage firm.
These policies were developed to maintain harmony among all the representatives of the firm and avoid disruptive disputes over commission sharing.
If the accepted premiss is that the brokerage firm owns all the listings, then that would indicate that you are not in a position to offer to share anything that you do not legally own and are entitled to share.
Consider the position of an adjudicator of an arbitration hearing who must base their findings on the letter of the law and the law of equity.
The law of equity relates to being fair and impartial and which an adjudicator when weighing all the facts as may be involved in your particullar situation and depending upon the general practice of other brokerage firms in your jurisdiction, (legal precedents) and regarding the same issues may find in your favour.
Prior to taking any action, one might consider making a reasonable offer of settlement, in writing,of an equal split of the 80% commission and which might be found acceptable and still leave you with 40% of the earned commission and 20% more than what you have received to date.
Adjudicators have a tendency to believe that the party who rejects a reasonable offer of settlement are in fact being unreasonable and may render their decision accordingly.
Important Notice: This information is provided as basic educational information by the author and is not a substitute for the advice of an expert and/or the advice of a lawyer. There is NO representation as to legality, accuracy, correctness of the herein information and the reader is strongly urged to consult a lawyer in the relevant jurisdiction to ensure accuracy before acting on this information .
Edited by Devil's Advocate (07/06/10 08:53 AM)
Edit Reason: typo
|
|
Top
|
|
|
|
|
#343110 - 07/06/10 10:01 AM
Re: Former Principal Broker refuses to pay my commision..
[Re: navarac]
|
Junior Member
Registered: 07/03/10
Posts: 7
Loc: Washington,Clark
|
Thank you for your input. I was actually looking for some real advise not for an angry reply like this. I do understand that dual agency is very hard to do so ,but i also bealive that i should be compensated for my work, which was double you are right.Thank you.
|
|
Top
|
|
|
|
|
#343113 - 07/06/10 10:46 AM
Re: Former Principal Broker refuses to pay my commision..
[Re: super realtor]
|
Junior Member
Registered: 07/03/10
Posts: 7
Loc: Washington,Clark
|
Hi super realtor, here is the reality.By contract i was to be paid 80% of the total gross commision. 20% goes to the brokerage firm. Now i have worked very hard to get this deal together, like i said i had to give a big discount to both parties in order for this to get Pending.I don't see how someone can work and not get paid what is in the contract.Yes my contract is expired at the time ,but i was still working under the same terms. I was still paying realestate fees to the office nothing had change. The former broker who is also a co-owner (conflict of interest)just decides to keep half of my 80% for just rapping up a pending deal.I did 99% of the work. The brokerage firm get's pay 20% anyway..Isn't the broker there to help when needed like you said it is his listings. It is his job to be there and support his agents.So why do we pay then 20% to the brokerage firm? I'm going to small claims and i'm sure the judge will rule based on contract. I have all the evidence how much work i have performed and how far i was involved in the deal. I offered the broker 20% so we can move on, but refuses to pay me, he said he deserves 40%, half of my commision. How is that ? Like i said conflict of interest, he is the co-owner of this company and he just decided to awared him self? Based on what? I asked if we could meet and compare who has done what and he refused. Of course he has no lists of things he has done for this transaction, like i do..He has nothing to stand on but say he "rescue" a Pending Sale , how is that? Is there something i'm missing? Thank you for your time super realtor.
|
|
Top
|
|
|
|
|
#343121 - 07/06/10 11:40 AM
Re: Former Principal Broker refuses to pay my commision..
[Re: REODayton]
|
Major Contributor
Registered: 08/16/04
Posts: 1979
Loc: Cary, NC
|
I'm going to small claims and i'm sure the judge will rule based on contract. Did'nt you say the contract expired?
_________________________
the real estate industry is changing...
|
|
Top
|
|
|
|
|
#343151 - 07/06/10 04:46 PM
Re: Former Principal Broker refuses to pay my commission..
[Re: dessi t.]
|
Major Contributor
Registered: 04/12/08
Posts: 4725
Loc: Vermont's North-East Kingdom
|
If all that Broker did was 1%, then that was still a pretty important 1%.
After all, you had tossed in the towel and given up on dealing with the Seller.
Without the Broker's participation . . . . there wouldn't be a Commission to fight over.
I don't know anything about the situation EXCEPT what you told us.
_________________________
Dale C. Hittle of GOLDEN RULE PROPERTIES in Glover, Vermont
Where We're Always Striving To Put Together "THE FAIR DEAL"
|
|
Top
|
|
|
|
|
#343167 - 07/06/10 08:16 PM
Re: Former Principal Broker refuses to pay my commission..
[Re: Vermont]
|
Veteran Member
Registered: 04/22/09
Posts: 540
Loc: California
|
I think the determining moment in this was when you "threw the towel in" and pulled in the broker to complete the transaction. If you hadn't left the office at the same time you could have expected the broker assistance without a commissionectomy or maybe less of one but to have left the office AND turned it over to the broker to complete, most brokers would probably have paid themselves for their participation as acting agent. I wouldn't invest the time or frustration in lawsuits, etc, and I'd go sell another house.
|
|
Top
|
|
|
|
|
#343170 - 07/06/10 09:13 PM
Re: Former Principal Broker refuses to pay my commission..
[Re: Crazy 2]
|
Junior Member
Registered: 07/03/10
Posts: 7
Loc: Washington,Clark
|
I asked for help when the transaction was placed by me pending. I talked to an attorney today and he said go for small claims and that i have case and i deserve my commision.My contract with this brokerage was expired however i contunued working for them and my license was on their wall so the attorney wants me to go for it. He said small claims is easy and the judge will most likely rule in my favor.Thank you for your intput...
|
|
Top
|
|
|
|
|
#343171 - 07/06/10 09:27 PM
Re: Former Principal Broker refuses to pay my commission..
[Re: dessi t.]
|
Major Contributor
Registered: 01/26/09
Posts: 2961
Loc: Old Dominion
|
Bottom line is the broker owns the deals in the brokerage.
If you push it to court you will probably lose, but broker may settle with you somewhere in between. I encourage you to shoot for that. Consider this a business endevour, and focus on thast aspect of it, not the emotion involved. That will get you no where.
_________________________
Trust your Maker. Watch your manager.
|
|
Top
|
|
|
|
|
#343178 - 07/07/10 12:18 AM
Re: Former Principal Broker refuses to pay my commission..
[Re: dessi t.]
|
Major Contributor
Registered: 01/27/07
Posts: 2779
Loc: LAND OF THE FREE!
|
I asked for help when the transaction was placed by me pending. I talked to an attorney today and he said go for small claims and that i have case and i deserve my commision.My contract with this brokerage was expired however i contunued working for them and my license was on their wall so the attorney wants me to go for it. He said small claims is easy and the judge will most likely rule in my favor.Thank you for your intput... if lawyers did not tell people to take it to court, they would not get paid. you can take almost anything to court that you want. lawyer gets paid either way. i would tell you to go to court too if i were an atty. i know that came across as harsh(i dont know hot to type it with empathy). my intention is not to frustrate or poo poo, but if i were you here is what i would do. forget that deal. chalk it up and learn from the experience. dont let that chain of events happen again. forget that commission and move on to close 35 more and shove it in the brokers face! kill em with closings. do it at another brokerage. let him realize that he should have paid you out and kept you in his shop. make him realize that you are successfull adn that it would have been better to keep you at his shop. go kill em with closings. its the best revenge. we all have transaction fallout. things happen, no matter how good you are. there are factors that are outside of our control. chalk it up and move on to focus on more closings. crunch= that is the term that i use to to obliterate any obsticle in front of me. prospecting...crunch through it with passion.... multiple agent interview for a listing...awesome...CRUNCH...crunch through it and get the listing...kill em with data, stats and charm.... crunch...put together the cleanest looking offers that have gone through a scanner for your next buyer deal....challenge yourself to have every i crossed and t dotted! go crunch through any potential "problem" and use it as crunch fuel to make your business and life go to the next level!!!!!!!!!!!! i feel as if i am going to battle when i go into my office....i want to get a plack (spelling<<<<) that says "War Room" office is where i go to battle for a better life every day monday - friday:-) ******************CRUNCH**********
|
|
Top
|
|
|
|
|
#343186 - 07/07/10 06:16 AM
Re: Former Principal Broker refuses to pay my commission..
[Re: dessi t.]
|
Major Contributor
Registered: 11/12/06
Posts: 1623
Loc: The Beach
|
I asked for help when the transaction was placed by me pending. I talked to an attorney today and he said go for small claims and that i have case and i deserve my commision.My contract with this brokerage was expired however i contunued working for them and my license was on their wall so the attorney wants me to go for it. He said small claims is easy and the judge will most likely rule in my favor.Thank you for your intput... For the record, I sued someone in small claims court and won yesterday. It took 11 months just to get a court date, but otherwise was pretty painless. Cost me $141 to file, though, and I still have to collect, but I'm glad I went through the process and stood up for myself. It was amazing - sitting in the courtroom how many people DIDN'T show up - I'll bet there were only two or three cases (out of at least 20) where only one party to the suit showed up... and when that's the case, you automatically win.
_________________________
Jennifer Allan, GRI RE/MAX Hall of Fame Author of Sell with Soul, Creating an Extraordinary Career in Real Estate without Losing Your Friends, Your Principles or Your Self-Respect
|
|
Top
|
|
|
|
|
This Google Custom search may do a better job of searching the forums for some keywords than the old forum search does. The results do not include threads from the Asset Managers Forum however. To search that forum you will need to be actually in the Asset Managers Forum and you will need to use the old forum search below.
|
|
Registered: 01/26/09
Posts: 2961
|
|
|
Previous Topic
Index
