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Broker withholding agent's commission

Licensed Real Estate Broker

San Rafael, CA

April 30, 2010

My broker is withholding my commission because the file is not yet complete. I understand that it not allowed. Does any one know the  civil code or regulation that deals with this?

Licensed Real Estate Broker

Phoenix, AZ

April 30, 2010

Hello Michael,

You don't provide enough information for an answer to your question. However, it is a common practice for brokers to withhold commissions until all required documents have been submitted to the broker. I don't know of any law that prohibits a broker from requiring pertinent file documents before authorizing commission payment.

See what your ICA and broker policy manual say.

Ed Ricketts

Real Estate Educator

Jersey Shore, PA

April 30, 2010

Mike

You don't say what state you are in, or what is missing. Has the property closed? In my state, certain documents are required by state law to be given, and acknowledged by the consumer. Example: agency notice, property disclosure notice. If our Real Estate Commission audits a file and these items are not there, it is grounds for a fine, suspension or revocation of a license, and brokers are at the same risk for failure to supervise. Is there a particular reason you did not get what is missing from the file, and what can you do to get those things to the file?

Licensed Real Estate Broker

St. Charles, MO

April 30, 2010

I know it is frustrating when you expect to get your check and can't get it. You have to look at it from your broker's point of view (I'm a former company owner). Your broker is responsible for your actions. If something goes wrong, they need a complete file. Withholding your check is the only way to insure that you make sure all the documents get turned in. I know that the company i work for won't pay an agent without a complete file and I can't blame them.

Linda Grissette

Licensed Real Estate Agent

Athens, GA

April 30, 2010

Your a professional, complete the file, get your check. It is not rocket science!

Licensed Real Estate Agent

Tremonton, UT

May 01, 2010

The agents in my office know that they will not get a check until all of the documents are in the file and signed and initialed and ensure no agency dates have lapsed. Timing is everything so my agents bring me the file prior to closing to approve. In this business you cannot afford to be sloppy, pay attention to the details.

Licensed Real Estate Broker

Brevard, NC

May 01, 2010

I am sure that office policy will allow that certain tasks must be completed prior to getting paid. After all if we sell a property a complete file must be populated unless you want the Real Estate Commission visiting your files and opening up a case no one want to have open.

Ever wondered where all the real estate for sale signs end up? They should be back in the office before getting paid as well as the lock box.

Licensed Real Estate Broker

Bullhead City & Fort Mohave, AZ

May 01, 2010

Lots of brokers in pay only on a completed file with all the i's dotted and t's crossed. In my office's IC agreement I reserve the right to hold a commission check until the file is complete too.

An incomplete file is a risk factor for a broker. So it's not unreasonable to require.

It's all about your IC agreement with the brokerage and the policies and procedures manual, which is probably addenda to the agreement. Check it and see what it says. Then get the file filled up and get paid :)

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