B
You don't need to be a broker to call the CAR legal hotline. Just call them.

However, you should know that a check is "an order to pay". I am not an attorney, this is not legal advice, however because you wrote them a check, I would be surprised if you did not have some obligation to make the check good.

OTOH, you may legally pay a principle to a transaction part of your commission. However, the question gets back to "why would you"?

My two cents is to talk with your broker so they are in the loop, but this is your problem. Try to negotiate a lower amount, explain your situation. Often giving somebody something works far better than trying to reneg on your word.

Hi Bluemalou,

If you are a Realtor and not just a licensed Real Estate Agent, you can contact CAR Legal via the hotline (the number is on the CAR website) to talk to a licensed attorney who works for the Association and can give you a legal opinion on the matter.

It won't cost you anything to speak to them and it could save you a bundle.

I shall also echo all of the other folks who have said that you need to discuss this with your broker ASAP especially because they are the ones who are ultimately responsible for your actions and this could get ugly for all concerned.

Please let us know what happens. Take care and good luck with finding a successful resolution to the situation.

Tisza Major-Posner, Realtor DRE#01784679, IVPG Realty

The Listing is always the Broker's not the Agent's.
First, pray and second, call your Broker.
Franklin

It's been said and I will say it again - Get Hold of Your Broker. ASAP. And tell him/her everything exactly the way it happened.

Bob Khalsa
Broker Owner
United America Realty

Wait a minute, you can't pay a commission or referral fee legally to somebody who doesn't have a realtor's license; at least here in Florida; I am pretty sure it's the same in Ca. What are you, as an agent doing getting involved in this scheme? I suggest you bring this to your broker's attenion ASAP as your broker may be liable as well.

Hello Blue:

As always, sage words from Bill. Unfortunately, it seems, whenever we try to "help" our sellers or buyers, we end up often paying for that kindness. Normally, if there is a commission reduction or rebate, that reduction should be paid by the California Broker to the client and NOT by you, as the agent. The terms of the commision rebate would be spelled out in the listing agreement, and then paid by the broker after settlement of all accounts. Otherwise, you--the agent--are responsible for the funds, and that's never a good idea.

In this particular instance, you should tell your broker about this--as his employee, any lawsuit against you will boomerang and smack the broker too. CAR (California Association of Realtors) provides an invaluable legal help line to real estate agents, and your broker will avail him or herself of that service. Depending on the attorney's answer, you may need to plan to consult with an attorney on this matter.

In the meantime, prepare your paperwork as if you plan to go to court. Make certain that you document all phone calls, and whenever possible, every call to and from your former client should be confirmed with an email or fax to the same person.

Finally, in the future, to protect yourself never ever perform any services for a client without a contract and, if the situation is unusual, without the permission and advice of your broker. My caveat to all new agents is always, "when in doubt, talk it out (with your broker)."

Good luck!!

Sincerely,
Grace Morioka, SRES, e-Pro
Area Pro Realty

The issue here appears to be "the value of your word."

If common sense does not prevail you could expect further action. Our recommendation is to anticipate this and consult an attorney......or at the very least, make your broker aware of this situation, which very likely could involve him/her.