RealTown's RealTownTalk

I hope someone can help me out with a commission issue.

I am the managing broker w/out any ownership in the company.  There has been a proposed takeover in ownership.  The new owners are wanting to "profit share" in my commission.  They want to lower the amount of commission I make on sales and profit share the remainder of my commission with all the owners. 

YES! I can't believe this is happening!  I guess my question is, can they do this?  Can unlicensed owners dictate how much commission I am allowed to make and then take my hard earned commission and "share in the profit"?

GIve me your thoughts!  I can't wait to hear what you think!

Lesley

Does your firm have a policies and procedures manual that you got when starting at the firm? If so, your commission structure should be covered in the manual (also their ability to change your commission stucture without notice, at will, should be covered in the manual). If you do not have a policies and procedure manual then I would suggest that you have a serious conversation about a verbal commission agreement that was established between you and the firm- regardless of who the owner is. Good luck.  

My suggestion would be to evaluate yourself first, not the new owners. Regardless of their ability, or lack of ability, to piggyback on your commissions, do you want to continue to work for the new owners?

Are you worth more than they are offering?

Do you have options?

It's the answers to these questions and I'm sure a few similar ones that really matter, not whether-or-not they can cut you up like many brokers cut-up the agents working out of their offices.

Good luck.

If the owners own the company  and you are their employee, I would strongly suspect that they can make any decision they choose.  Your options are to stay or go. Do you have a contract with the owners?  If so, and I hope you do, what does your contract say about this subject?  If you do not have a contract, is it worth hiring an attorney? If you left the company how many agents would follow you where ever you went?  If a good number of the producing agents would follow you you may be able to use that as an edge to get the owners to rethink their decision.

There is a nation wide company that really does profit share and it does not come out of your pocket.  Maybe you should look into that.  The initials are KW.

Kari