Broke New Br…, Real Estate Pro in Inglewood, CA

I am a new broker in the state of California, times are hard so I had to go work for a REO agent that works

Asked by Broke New Broker, Inglewood, CA Fri Jul 3, 2009

for a big franchise to handle their buyer leads as a broker associate under the franchise broker. I still have buyers that I've been working with for months almost a year prior to signing up with my new boss that are finally going to bite. It feels so wrong to share a commission from clients I have been working with for months with my new boss where we will go 50/50. Since I am a broker, without going to my local DRE deputy with this question, can I still use my broker license and represent my old buyers, kind of like having a 2nd job and earning that 2nd income? Is it ethical? Is it legal? My problem is, with the new leads I get from my new boss, I work them, I work them hard, but I understand he gets half because he gave me the lead, but I put the labor. With my old leads, I worked hard to get the lead and then worked hard again to cultivate and get them ready to purchase and it feels so wrong to do all that work and then give up half, what do I do?

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Brokers do not hang their license. If you are working for another broker, you are typically called a Broker Associate. According to the DRE, it is okay for you to run some deals through your broker and some through your own license.

But if you signed a contract stating that all deals must go through this new broker, then the broker may have a claim against you. The best answer is to speak to the broker and renogotiate your contract. Try to get 80/20 on deals you originated.

Are you a member of your local Board of Realtors? If so, call the attorney hotline. It is a free service and they will tell you if you are violating any DRE rules.
1 vote Thank Flag Link Fri Jul 3, 2009
Greetings,
Desperate Times Lead to Desperate Thoughts! A college professor once told me when I was younger referencing a college dealing with the parameters of a grant received from the government 'If you are going to turn tricks don't complain about the John'.

What does your independent contractor agreement say?

I refuse to accept that you can not have a logical conversation with your broker about splits on leads that he/she did not hand you. Hindsight, that should have been discussed when you got there. ANYHOO...you know as well as anyone else that EVERYTHING IS NEGOTIABLE!! But one thing that is NOT negotiable in my State is the fact that the broker whomever holds your license is the person/entity to whom commissions are paid.

I will not accept that things are so Bleak that you are WILLING to throw away your license trying to be slick. Talk to the man...'Look Mr. X...I've got some leads that you did not hand to me (Glen Gary) and although I should have asked before now, I need to know your understanding of whether or not I owe you 50% split on my leads? I wouldn't imagine I would...you tell me'

In the end you should follow your State's Real Estate Commission Guidelines but I think you owe it to yourself and your Broker to have a conversation. No matter the outcome you will have a clear understanding and respect for who and where you are housing your license. It's hard to be rescued and remain autonomous simultaneously.

Good Luck,
1 vote Thank Flag Link Fri Jul 3, 2009
Think about E & O and you will have your answer.

Bob Khalsa
Broker Owner
United America Realty
213-926-5847
0 votes Thank Flag Link Fri Jul 3, 2009
Hello,
Whatever agreement split etc. when you agreed to work with broker applies of course you can go back
and ask and explain and maybe work iit out that way. We all generate business because of people we know or our name recoginition but we all get leads from our brokers so you you are bound by whatever agreement you you agreed upon at first..
0 votes Thank Flag Link Fri Jul 3, 2009
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