Agent2Agent in Laguna Niguel>Question Details

Mike, Real Estate Pro in Laguna Niguel, CA

In California, how long does the 'broker' have to pay out commissions to the agent after monies are received?

Asked by Mike, Laguna Niguel, CA Wed Oct 15, 2008

Where can I find the California RE Broker statute or law the governs the Broker's payment to sales agents of commissions received in their brokerage account. How much time can a broker take to pay agent ?

Help the community by answering this question:


I agree that you need to look at Section 8-E of the Independent Contractor Agreement. Note that this section is rather vague in time frames. The section reads that payment should be "immediately or soon thereafter as possible." It all talks that there are additional contract riders or addendums which could be added by the broker. Our brokerage for instance has different exhibits that are attached to the ICA to discuss issues not found in it. It follows then that you would review your ICA and any other documents you signed when you joined the brokerage. Hope this helps.
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0 votes Thank Flag Link Fri Oct 17, 2008
I agree, it is based on what you agreed to when you signed your independant contractor agreement. In my office i pay as soon as the check clears, in most caes they day after closing up to 3 days, i have heard other franchises that pay after 7 days and others only on the 1st or 16th of the month. so it can vary widely. Ask your broker
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0 votes Thank Flag Link Thu Oct 16, 2008

The answers lies in your written agreement with you broker. It could be the same day if title cuts your portion of the commission or longer.
0 votes Thank Flag Link Thu Oct 16, 2008
Pam Winterba…, Real Estate Pro in San Ramon, CA

I completely misread your original question. Thom is correct that your broker's obligation to pay you is established in your independent contractor agreement. My apologies.

Keep in mind however that they can't pay you until they receive money from the coop broker and/or the title company. Be patient it takes some time sometimes to get things run through all of the accounting that must take place.

Cameron Piper
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0 votes Thank Flag Link Wed Oct 15, 2008
Hi Mike -

Section 8-E of the Independent Contractor Agreement you should have signed with your Broker outlines the terms of payment.

You can find a copy of the ICA in WinForms.


Thom Colby
Broker - Associate
Southern CA
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0 votes Thank Flag Link Wed Oct 15, 2008

I am going to go out on a limb and say that this isn't a statutory issue. The binding agreement that you have formed with the listing broker (to pay the commission) is created as a result of the rules of the MLS. I would call your local board of realtors or the MLS office where you both are members and ask them if they have a rule pertaining to the length of time for payment. My hunch is that they don't but I have been surprised before.

Cameron Piper
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0 votes Thank Flag Link Wed Oct 15, 2008
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