if an agent leaves an office does he still get commision from pending offers?

Asked by Steve, 03865 Sat Sep 11, 2010

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Scott Godzyk’s answer
Scott Godzyk, Agent, Manchester, NH
Sun Sep 12, 2010
Steve the clients and their files remain property of the Broker that agnt worls for. Taking such files or attempting to steal or influence such clients, will result in swift action by the NH real estate commission. The agent should have signed a independant worker agreement along with a company policy that outlines what office policy is along with state laws regarding such. In the lapse of an agreement state of NH real estate law takes the primary role in what is and is not allowed.

Although the clients do stay with the brokerage, any contract would state what the agent would receive, what percenatges stay with the broker and what gets paid to that agent. As well it should outline who is responsible for what, it may allow the agent to finish teh transaction or may state the agent is removed from teh transaction and finished by that broker or a desiganted agent appointed by that broker and the original agent will receive x amount when it closes.

That agent faces action for brealing rela etsate laws of NH as well as a probable civil suit fromn the broker if any deal falls through or is lost. This is a question regarding State of Nh laws, so that agent should best hire an attorney promtly for advice and not rely on opinions of anyone that is not a lawyer on questions of law.
Web Reference:  http://www.ScottSellsNH.com
1 vote
What if you leave his office go to another office with the same name and he is still your broker
Flag Wed Jun 7, 2017
Melina Tomson, Agent, Salem, OR
Sat Sep 11, 2010
It depends on what the brokerage wants to do. For the agents have come to my firm we did a change of representation agreement and then the initial brokerage still got their split.
0 votes
Eduardo Saav…, , Anaheim, CA
Sat Sep 11, 2010
When you affiliate to a Broker you sign a contract (California) this contract details how you handle this kind of things. Typically you shouldn't leave a Broker until you close all pending transactions. But if this can't be done the contract normally calls for a reduction on the commission since someone affiliated with the Brokage House needs to close the transaction. It is illegal to take any files out without the brokers permission.
0 votes
Deluxe Realty, Agent, Las Vegas, NV
Sat Sep 11, 2010
Hey thanks everyone I'm learning a lot. Just became a Broker, and just recruited my first agent. Wherecan I ger some good sample Broker/Agent contracts, that spell everything out well?
0 votes
Derek Eyring, Agent, Lake Tapps, WA
Sat Sep 11, 2010
Totally depends on the Broker's/Office policy. Customarily agents receive 50% but there are a lot of factors involved. Look at your contract with your broker, it should spell it out.
0 votes
Dane Hahn, , 34223
Sat Sep 11, 2010
Hi Steve, The right answer is the agent will be paid for what he has closed, because as you may know, the Broker is not paid until there is a closing and the agent is ALWAYS paid by the Broker.

Would he get anything on the pendings? You indicate he is representing the buyers as an agent of his broker. That eventuality might have been included in his contract. When I ran my real estate office, I offered my agents 50% of their commission due if the sale cloased during the first 30 days after they left, and 25% during the second 30 days--and then nothing after that.

NH has seen this kind of bad behavior before and will deal with it swiftly and without mercy. I know at least one former Realtor who is now selling cars instead of homes since he lost his license from being smarter than everyone else. But then I know a couple of former Lawyers who are now doing landscaping thanks to a real estate deal gone bad.

Hope this helps,

Dane Hahn
NH Broker
0 votes
Deluxe Realty, Agent, Las Vegas, NV
Sat Sep 11, 2010
Steve, this is very simple.

ALL of the Agent's clients, are essentially, not the Agent's... they are the Broker's clients.

As the Broker, I would immediately notify the police that the Agent took the files; this is THEFT. I would also notify the state's Real Estate Division. Also, follow state/local regulations for terminating an Agent from the Office, and Associate of REALTORS (if applicable).

Note: If the Broker AGREES and the Client AGREES, the Broker can terminate the relationship with the clients, and transfer the file to the new Agent's Broker, OR, the Broker and the new Broker can agree with the clients acknowledgement, that a certain percentage or flat rate be paid to the new Broker (to pay the agent). HOWEVER, if the license is not even active, FORGET ABOUT IT.



--

Sincerely,

Mark D Fleysher, MBA, Broker, REALTOR
The Jack Conley Realty Group
C. 702-291-8186 F. 702-946-0843
0 votes
Thom Colby, Agent, Irvine, CA
Sat Sep 11, 2010
Steve -

You said; "he quit at the end of day and went to a different office the next day. took files out of office trying to finish them. he tried changing escrow demand from old office to new office."

A couple oif observations;

1) he went to a diferent office the next day - but now you say his license is nowhere - which is it?
2) He took files out o fthe office - VERY ILLEGAL - those files belong to the BROKER as do the transactions - they NEVER belong to the agent.
3) he tried changing escrow demand - WHY, they are NOT HIS transactions - they are the Broker's.

As far as the commission is concerned - if the agent has an active license and teh former broker allows him to finish those transactions he may get paid. If he is not actively licensed with any broker, he cannot work those transactions and the former Broker who owns the transactions will have to assign them to antoher agent or finish them himself.

I think there is more to this story. Typically agents who want to change Brokerages finish-up their transactions while deciding where they will go next. When they make the decision, if they still have something pending, typically the agent will chat with the departing Broker and make an arrangement so the files are handled, no one's reputation is tarnished and the agent typically gets their entitled commission.

Again, I think there is more to the story - agents don't just leave that end of a day - they also don;t try to go around a Broker and change escrow demands.

If the former Broker pays him anything once his license is actiev again, he should feel very fortunate.

Best of luck to him,

Thom Colby
Broker / Owner & Certified HAFA Specialist
Thom Colby Properties
Newport Beach, CA
Moving Lives Forward (TM)
We NEVER DOUBLE-END Transactions in our Brokerage. There is NO benefit to the Seller or Buyer and only benefits the Agent. Also, NEVER use your RE Agent / Broker as your Lender or vice versa.
888-391-5245 Direct Cell
THOM@THOMCOLBY.COM
DRE# 01398570
0 votes
Jeanne Feeni…, Agent, Basking Ridge, NJ
Sat Sep 11, 2010
Doesn't sound good to me for the agent who left. Best to close out transactions before make the change.

Best,
Jeanne Feenick
Unwavering commitment to Service
Web Reference:  http://www.feenick.com
0 votes
Hello Jeanne, Busy agents are never afforded the convenience of leaving a company without having quite a few still pending properties with the old company. If your not a busy agent then good for that person.
Flag Sun Jun 1, 2014
Jeanne Feeni…, Agent, Basking Ridge, NJ
Sat Sep 11, 2010
Doesn't sound good to me for the agent who left. Best to close out transactions before make the change.

Best,
Jeanne Feenick
Unwavering commitment to Service
Web Reference:  http://www.feenick.com
0 votes
Trevolyn Hai…, Agent, Highland, CA
Sat Sep 11, 2010
Ouch.
He needs to be a licensed agent to receive a commission, even if he doesn't have it hung at an office.
If he is licensed, he can collect those commissions but the Broker can & will charge him 'transaction fees' & any other costs the Broker feels is necessary to close those sales so there may not be much left.
He may want to speak to an attorney.
Best of luck,
Trevolyn
0 votes
Steve, , 03865
Sat Sep 11, 2010
the agent that left office has 3 pending houses as the buying agent. he quit at the end of day and went to a different office the next day. took files out of office trying to finish them. he tried changing escrow demand from old office to new office. Broker but a stop to it. Just wondering if he still gets paid? also no longer holding license at any office in our county board offices.
0 votes
Trevolyn Hai…, Agent, Highland, CA
Sat Sep 11, 2010
Hello Steve,
Can you give us a little bit more info.
Is this re: a property the agent in question is the listing agent or does he have the buyers or both?
Trevolyn
lic.#01444353
0 votes
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