I switched brokerages back in July 2010. Two weeks ago I got a call from my former broker advising that in May 2010 I had deposited a commission cheque that was payable to the brokerage into my personal account. No idea how I made an oversight like that, or how my bank processed a cheque that was payable to someone else or how my former brokerage didn't realize this for almost two years.

Needless to say the broker wanted the funds returned, so I gave them a certified cheque for the full amount, $5,040. The trade record for the deal had already been signed by both myself and the broker of record just before I left the brokerage back in 2010. I figured the commission would be disbursed as per the terms of the original trade record. They sent me a revised trade record and the figures all looked fine, but then I received another updated version showing that zero commission was due to me. In addition to keeping the full amount of the commission, the brokerage is claiming that I owe them an additional $3,500 for “unpaid expenses”.

There was no mention of any unpaid expenses, or any future expenses, when I left the brokerage in July 2010, but now they claim it’s for not giving enough notice when I left. What legal grounds does the brokerage have to issue these expense fees? And can a broker age arbitrarily change a trade record after the fact? It’s not as if this is a small little independent brokerage - - they’re one of the larger ones in Canada.

What does your independent contractor agreement say about termination and notice?

I agree. Check out your contract terms you had with that brokerage.

However, a $3k bill to leave the firm seems a little crazy. What do they need the notice for?

You might want to get some actual legal advice, but my gut tells me that they'd have a hard time getting a court to agree with them.

Of course you may have a problem getting paid if you ever do a deal with them in the future.

Well the problem with depositing a broker's check in your personal account could be large. I heard of an agent years ago who lost his license for that, if you pursue it it, they might bring that into it and it could be a problem. These things are regulated by the state laws so it may be different where you are. I would talk to a lawyer as well.

Yes, some could interpret it to be Embezzlement, Larceny . . . . or Bank Fraud.

"Two weeks ago I got a call from my former broker advising that in May 2010 I had deposited a commission cheque that was payable to the brokerage into my personal account. No idea how I made an oversight like that,"

I don't know how you did it either.

The error was on your part for depositing a brokerage check into your personal account no matter HOW it got there or that the bank didn't notice it.

I would consider yourself fortunate not to lose your license or get sanctioned.

First I would want to see a copy of the supposed check I deposited, how it was actually made out for sure.

Secondly, why wasn't this caught almost immediately, what kind of record system would allow this to pass, some kind of failure to supervise and maintain proper records by the broker in action here?

Third, you earned a commission, or you didn't, and you know if you did or didn't so I wouldn't let the zero commission fly. You did a deal for free? Have a clause where you forfeit income but not expenses when you leave? Or a clause you can't quit without a formal dance routine of some kind instead of 30 day notice?

Don't know about Canada but when I left an office is the States, expenses not a normal part of a transaction in progress didn't accrue after my license left, an attempt like that would have generated my rath. Your old broker having tough times and is in need and greedy? Or has a dose of sour grapes in his mouth?

Aren't you an independent contractor like in the States, I can't imagine that kind of contract existing, or anyone signing one. Even an employee leaving wouldn't have that problem. The only question would be what was due me on deals in escrow and on my active listings taken and I would sue to get what is due me. And I hope you are reviewing the contract you have with your current brokerage.

Be interested in what kind of expenses the are attempting to collect on, and why they think the commission is zero.

Yep, what Brian said! . . . and if I were you, and I knew I had my ducks in order, I'd give my old broker a simple response, "No."

And then let them pursue it. I'd probably have an attorney lined up, in case they did.

What's the likelihood of Co-Broking on this "former" broker's listings in the future?

I always like to keep peace with ALL if my Competitors, and if one of them feels that they've been wronged, or there has been a mis-understanding with one of them . . . . I try to get those issues resolved quickly.

Buyers and Sellers come and go; but my Competitors are mostly here for the duration, and (in my small market) I have to be able to keep good working relationships intact with pretty much all of them. We're NOT one big happy family; but we have to work together to survive.

This is great advice...

As advised above, seek legal counsel. Post an update when/if it progresses.

Yes turn the other check and be prepared for that one to be slapped too. Generally even in a large market, it consists of many smaller markets that I will be doing business in it for a long time.

Putting up with these kinds of jerks is a poor policy no matter how small your marketplace, all you do is allow them to keep driving on the wrong side of the road and you turning your head and ignoring it. The smaller the market the more happy I am to jail a jerk, and not grant immunity.

The 3 jerks I got thrown out of the real estate board in my career all got away with it for a long time because no one wanted to make waves and believe me the other members were happy they were gone and the rest of us got along just fine. You don't have to worry about getting along with someone not in the business anymore and I'm only to happy to make that possible.

Sounds like you may have been scammed.

i would show up at his office and have a polite sit down. people are ten feet tall when sending a bill through the mail. sit face to face and you are the same size. if his allegations are in fact incorrect and he does have no reason to collect the money, he might realize that it is more expensive to go to court for something he wont win, but figures that by sending a bill, you might just pay! on the other hand, if you are wrong and do owe teh money, pay.

I said this earlier in the thread but I think it bears repeating. I don't know how it is in Canada, but here where I work if you deposit a broker's check into your personal account you are subject to losing your license. So if you try to make this into a legal action you could stand to lose way more than he would. I would go in and politely try to work it out, but I would be sure that I did not insult him or threaten him, unless I was 100% sure that he was not able to report me to the RE commission and yank my license. He might be blackmailing you, yeah, but he might actually have you over a barrel.

I agree with deepsea . . . . there are always three sides to these stories:

The SalesPerson's;

The Broker's;

and then there's that irritatingly stubborn, inalterable and persistent set of facts commonly referred to as "THE TRUTH".

So far in this thread, we've only heard the SalesPerson's viewpoint, and even then, only in the form of the original thoughts on January 31st . . . . nothing more? It may well be that if s/he didn't understand how Commissions were supposed to flow, then there may have also been a mis-interpretation of these other money related matters that have come up since the audit discovered the mis-appropriation of the Commission.

We know nothing about these other expenses that have now come to light; but it may well be that the Broker simply forgave or totally ignored (you can't get blood out of a stone) the need to be compensated for these items UNTIL the discovery of this Wayward Commission was made . . . . and THEN, the time for the Brokerage to have such a charitable attitude was over.

We need to know the terms of whatever Independent Contractor Agreement may have now been enforced and then hear "The Rest of the Story !"

deepsea: All commission here also must run through the brokerage. I have no idea how something like that got missed for so long but all registrants know that commissions must be paid through the brokerage so I do not think that RECO would be too understanding. Of course the brokerage will not likely want to have to deal with RECO either so the best idea would indeed to be to go in and come to an agreements of some sorts.

As far as the amounts that they claim are owed, as has been pointed out many times, the contract would be the best place to look. If there are monthly dues and a minimum notice required, then there could be dues still owed.....or there could be unpaid dues still owing....as Vermont pointed out, we have only heard one side of the story.

I appreciate the many different viewpoints and comments from everyone. When I left the brokerage there was no mention of any outstanding expenses due. When the trade record was signed off the week before I left the brokerage, there was no indication of additional deductions for unpaid office expenses. When the broker contacted me two weeks ago there was no mention of any office expenses that were due. I asked if they only needed me to pay the broker's portion of the commission that was due, but the broker insisted he needed the full amount of the commission and would then give me my portion as per the original trade record. Once they got the certified funds, suddenly the trade record changes.

Again...what does your independent contractor agreement say about what happens to your unclosed business when you leave the brokerage? All your answers are there.

The commission belongs to the broker, not you. The listing agreement or buyer broker agreement that caused the commission to be owed was made between the client...and the BROKER...so the extent of your rights to that commission depend on what it says in your buyer broker agreement.

Once you know what it says, then you'll know what your next steps need to be.