Agent2Agent in California>Question Details

Andrew Vagley, Real Estate Pro in Irvine, CA

Can I fight for my full commission???

Asked by Andrew Vagley, Irvine, CA Fri Sep 20, 2013

I'm a real estate agent. I joined a brokerage and signed a commission contract of 70/30, plus they charge a 6% royalty fee. The brokerage did nothing to assist me and I recently left - as I have my own broker's license. I have a property about to close, one that I've invested three months of my time and energy into (short sale!) and I deserve my full commission. Is there anything I can do to avoid giving up 36% of my hard-earned money?

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16
Andrew,

Consider yourself lucky. I left C21 and the broker took all but 25% of the commission on the pending deals that closed. Real your contracts ahead of time!!

VP
0 votes Thank Flag Link Tue Sep 24, 2013
Although you don't like the commission split, you signed up for it. Big brokerages often suggest that affiliation with them is of benefit to the agent. I have not found this claim to be true and it sounds like you haven't, either.

Unless the brokerage stood in your way or did harm, best practice is to close the transaction and focus your time and effort on new transactions with you acting as your own broker.
0 votes Thank Flag Link Tue Sep 24, 2013
Making a change like that is always tough. Looks like the consensus of opinion is that you are bound by your prior contract.
0 votes Thank Flag Link Sun Sep 22, 2013
Hi Andrew,

Congrats on opening up your own office.

In MD the listing is brokerage unless the broker agrees to a release which is unusual.


Good luck
0 votes Thank Flag Link Sat Sep 21, 2013
Unless this was negotiated when you left the company, chances are the listing belongs with the brokerage. One more reason to go out on your own! I've been an independent broker for many years and could not be happier to be free pf the corporations running my business!

It definitely would be worth a consultation with an attorney.

Good luck. I feel for you.
0 votes Thank Flag Link Sat Sep 21, 2013
In Florida if an agent leaves a brokerage, agent must obtain a release from the Broker on any pending transaction, of course, this will be up to the Broker to do. According to your statement you are lucky enough to walk with 64%, in Florida the full commission can be picked up by the Broker.
0 votes Thank Flag Link Sat Sep 21, 2013
Hi Andrew,

If you took the listing while with your former broker, the listing belongs to them. Most brokerages clearly spell out what happens in the event you leave with any active listings or pending sales. You may want to read your contract again or consult with any attorney but at this point it looks doubtful....

Best of luck to you with your new endeavor!

Barbara Grandolfo
0 votes Thank Flag Link Sat Sep 21, 2013
Andrew,
You've heard this before, and it makes all of us go plewy...but it's time to call your attorney.
The attorney representing the title company you intend to use should work nicely.
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The big broker is attempting to bully the little guy..YOU.
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As you know, there was a MOUTAIN of paperwork involved in transfering your listing from KW to your brokerage. All the details must be complete, even the non-sense ones. I've personally known many who left Keller Wiliams and the broker employed every tool available to punish and be uncooperative. One recent defector was actually out of business for a month. The agent prevailed and is a mega producer for REMAX. Nothes says, "I WIN" like success!
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It is always benefical, if you are factual, to identify the parties involved. It serves to warn the innocent and hold the transgressor accountable.
0 votes Thank Flag Link Sat Sep 21, 2013
While it "pains" me to say this - consider yourself lucky they don't want "more" money! I've seen cases where brokers will tack on admin costs because the file technically hasn't closed yet and they may have to give it a cursory glance. I would give them what they want and let it go. The 36% re-affirms your reason for leaving. Good job!
0 votes Thank Flag Link Sat Sep 21, 2013
Read the contract you signed--most state the brokerage is entitled to the split even if you leave before it closes.
0 votes Thank Flag Link Sat Sep 21, 2013
It depends on what's on your contract with your previous brokerage. Good luck!
0 votes Thank Flag Link Sat Sep 21, 2013
It will all depend what your contract with your old brokerage states. A listing belongs to the brokerage, not the agent.
0 votes Thank Flag Link Sat Sep 21, 2013
Usually what you have In Contract should stay with you but.... as mentioned previously, read your contract.
0 votes Thank Flag Link Sat Sep 21, 2013
Your contract is your contract and it can't be changed after the fact. If there is no provision for a referral agreement in your contract then the broker is stuck with it. I don't know how things work in California but there is probably something akin to a small claims court where you can bring this dispute. I doubt very much the broker would want that kind of scrutiny, however, so he may see reason if you even threaten to do something like along those lines. Stick to your guns. I am very sorry you had this experience. I don't like people who fail to live up to their promises and I really hate surprises.
0 votes Thank Flag Link Sat Sep 21, 2013
Other than asking them nicely to reconsider their position - there probably, imo, is nothing you can do..........

But I am curious - since you said it is "about to close"......you could have waited to leave until after it closed.

Didn't you sign an independent contractor agreement when you started with the company?

It should have spelled out what you would give up if you leave the company with pending closings.
Clearly it did, as you are quoting they will keep 36%.........so, you agreed to that.

ps
a short sale is closing in 3 months?.......consider that a quick closing!
0 votes Thank Flag Link Fri Sep 20, 2013
I did sign an independent contractor agreement. My agreement actually stipulates that if I leave the company I can take my listings with me. However, the broker said that I'd have to sign a referral fee contract laying out the same fee split as my commission agreement. 3 months, and two foreclosure extensions, tracking down a trustee document from 1999, and so much more!
Flag Fri Sep 20, 2013
This place sounds like K. Williams? Is this correct?
0 votes Thank Flag Link Fri Sep 20, 2013
yup
Flag Fri Sep 20, 2013
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