Got My money!!!Brokers illegaly keeping realtor's commission! Happen more often than you think!

By
Real Estate Agent with RIVERVIEW REALTY

 

THANKS for all your comments. I just got my money.

Nevertheless, I do think that we are left unprotected against those broker and start wondering what can i do to change that????

This really an outrage,

It happened more often than you think and I feel that there is not enough law in place to protect agents from broker's keeping their hard earned commission just because they feel like it.

I recently had a closing. The policie of the office (wwhich Thank GOD I have  a signeddcopy bbyy the brokerr)  says when an agent have a closing by the time he turned in a complete file with the check the office will disburse the commission check within 5 business days after receiving everything.

I remember asking the broker when I was signing up why the 5 business days and he answered "to make sure the check clear because so many title companies are going under nowadays and their checks bounce."

To speed up the process the day of closing, I asked the title company to wire the commission instead to the real estate office which they kindly obliged.

Now we are 15 days since that transaction and I still did not see 1 penny of my commission check.

I found this outrageous, especially because I am a full time realtor and I do not have a pay-check.

This real estate office is a big one with more than 500 agents and the broker is part  owner of a title company and a mortgage company in the same office. I talked to some of the other agents and learn this is not the first time that the broker is illegally keeping the agent's commission and releasing it in a month or 2.

I feel that as a realtor we do not have a strong back up system to prevent this kind of thing.

I am giving him until Tuesday and I will fill a complaint with FREC. I already put my license somewhere else but I am afraid that I will have to go thru the same nightmare with some pending transactions that will have to close with his office nevertheless.

Please share your thoughts, if you had to deal with a similar situation. What can I do? Will FREC really assist me in getting my commission?

WHAT PROTECTS US AGENTS???????????????????

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Rainer
4,470
Karoll-Ann Fanfan
RIVERVIEW REALTY - Pembroke Pines, FL

If you reading this blog today be aware of the name of the real estate company that show up in my profile... I will update my profile with new real estate info tomorrow :-(

Jul 05, 2009 05:20 AM #1
Rainer
336,110
Chip Jefferson
Gibbs Realty and Auction Company - Columbia, SC

That just sucks. I am with a broker that gets me paid immediately after my closings. We don't wait on a clear check. Geeezzz Good luck!

Jul 05, 2009 05:22 AM #2
Rainmaker
238,410
Angelia Garcia
Pure Realtors - Dallas, TX

That falls under civil suit I believe.  However, I would go ahead and file a complaint since this is not the first time.

Jul 05, 2009 05:23 AM #3
Rainmaker
643,578
Sun City Grand Homes Surprise AZ Real Estate Leolinda Bowers Designated Broker Leolinda Realty
Leolinda Realty - Surprise, AZ
Sun City Grand in Surprise Arizona

Karoll-Ann, this has never happened to me since my brokerage is prompt in distributing checks.  I'll be sure to bookmark this post.

Jul 05, 2009 05:23 AM #4
Rainmaker
636,572
Maria Morton
Chartwell Kansas City Realty - Kansas City, MO
Kansas City Real Estate 816-560-3758

I am affiliated with an excellent, compassionate, and professional broker. Our company is Prudential and we do not suffer through this unethical experience. I hope that the new broker you have chosen is more professional and honorable.

Jul 05, 2009 05:24 AM #5
Rainmaker
214,476
Nancy Milton Holtzscher
RE/MAX Alliance in St.Louis' Illinois suburbs - Edwardsville, IL
Edwardsville/Glen Carbon, Illinois Broker, REALTOR

Wow, sorry to hear that. I am with someone who pays the same day as closing, which is great because you've already waited so long during the sales process, so I hope your new situation will work that way as well. Good luck.

Jul 05, 2009 05:25 AM #6
Rainmaker
1,085,952
Greg Nino
RE/MAX Compass, formerly RE/MAX WHP - Houston, TX
Houston, Texas

Karoll-Ann,

In Texas, the Real Estate Commission does not handle complaints between agents or brokers. Our board - MLS does however. We also file complaints with the Texas Association of Realtors, I'm sure your state has the same set up.

That commission, file and transaction is property of your broker, at least it is in Texas. Realtors have an ICA agreement with their broker that outlines a payment structure of some type.

If my broker wanted to she could kick me out of my office and keep all my listings & pending files if she chose to.

I close at a very well known title company that isn't suffering or going bankrupt. I also would not tolerate for 5 seconds a broker who sat on my check & neither should you. You could always take your broker to small claims court, it's cheap and easy to do. I would if I were you. Best of luck.

Jul 05, 2009 05:25 AM #7
Rainer
340,863
Kris Wales
Keller Williams Realty - Lakeside Market Center - Macomb, MI
Real Estate Blog & Homes for Sale search site, Macomb County MI

I just read your message under the post in which you are switching brokerages.  Bravo!   How do we protect ourselves?  With our feet.  We walk.  We leave.  When a brokerage is without any agents all they have left is themselves.

You also need to go to court to get your paycheck (if you haven't received it already)

Please let us know how this turns out.  We care.

Jul 05, 2009 05:26 AM #8
Rainmaker
426,083
June Tassillo
Owner/Broker RE/MAX Elite Realty - Franklin, NC
Let me help you with the next phase of your life!

I would be pitching one hissy fit... Our company pays us right away as it should be.  What is their reason for making you wait?  I can see letting them make a deposit first and waiting a few days but 15 days?  That stinks!

Jul 05, 2009 05:31 AM #9
Rainer
4,470
Karoll-Ann Fanfan
RIVERVIEW REALTY - Pembroke Pines, FL

Thank you guys for your comments. I know, I am so mad. Especially that I was working with that client for 8 months. After all this hard work now I have to fight for my commission.

Greg Nino from TEXAS, this is exactly what am I talking about...it should not be that way that all transaction belong to the broker and if they want they can just get us out and keep our money.

I will try to see if the board of realtor will handle it and will take this to court if I have too.

 

Jul 05, 2009 05:39 AM #10
Rainmaker
674,388
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

That is a shame.

[the broker is part  owner of a title company and a mortgage company in the same office]

I didn't know brokerages COULD also have interest in title companies. In my area (AZ) I know escrow officers who 'used to' have a RE license and put it on ice because it is a conflict of interest and not allowed.

As for the delay/nonpayment, that would not happen in my office BECAUSE I authorize title company to cut a separate check for the agent's split at COE. They can then pick it up or have it mailed to them as they choose.

I don't want ANY agent connected with me--present, former or referral agent--to have to chase down their money. It's beneath their dignity and would be disrespectful.

 

Jul 05, 2009 05:40 AM #11
Rainmaker
394,850
Elizabeth Cooper-Golden
Huntsville Alabama Real Estate, (@ Homes Realty Group) - Huntsville, AL
Huntsville AL MLS

You go girl!  I would most certainly file a complaint with the board.  They need to be taught they can't conduct business this way.  That's just poor business practice.  Kudos to you for switching offices.  Sounds like it was a good move!

Jul 05, 2009 06:46 AM #12
Rainmaker
655,832
Bob & Carolin Benjamin
Benjamin Realty LLC - Gold Canyon, AZ
East Phoenix Arizona Homes

Yep-- time for a new broker it seems -- all the best.

Jul 05, 2009 01:46 PM #13
Rainer
4,470
Karoll-Ann Fanfan
RIVERVIEW REALTY - Pembroke Pines, FL

THANKS for all your comments. I just got my money.

Nevertheless, I do think that we are left unprotected against those broker and start wondering what can i do to change that????

Jul 08, 2009 07:16 AM #14
Anonymous
Diane Wheatley

This is exactly what agents from my former office are dealing with and it hurts.  Not only in the wallet but in your soul.  And I agree that there are not enough protective rules or laws available to govern and prevent this type of behavior from happening to others. 

I am a licensed broker in the state of California who procured a buyer and closed escrow on a home only to have my entire commission diverted into my employer's bank account with no hope of recovery.  I was a salaried employee, not anything more and this closing was performed outside of the work place on my time. 

I am going to file any action I can muster against this thief along with a complaint with the labor board, department of real estate, local board and law enforcement too.  I left that compnay in July only days after this occurred.  But I'm still reeling from losing my $9,000. commission.

Sep 04, 2009 03:43 PM #15
Rainer
4,470
Karoll-Ann Fanfan
RIVERVIEW REALTY - Pembroke Pines, FL

Well, Diane Wheatley

I really encourage you to file everything you can. In this situation the broker always think that you will never follow thru. In my case I wrote to the attorney general of Florida and he answered me with all possible direction I could have gone. Also, you need to officialy asked them for the money. Send a certified mail to the address the have on the department of business bureau. (official address of broker on their license) send the mail with confirmation delivery. I only paid $10 for a demande letter at lawdepot.com or just google demande letter. DOcument when the got the commission and keep faxing and emailing. After that you can file in small claim court.

You can also file a complaint with the better business bureau and with your loacal board of realtor

When my former office knew what I was doing they called me up and gave me my money right away.

Whe some common sens get into them they will realize that it not worth $9,000 for them to loose their license.

I was even prepare to call help me Howard from the TV.

Those Brokers are like rapist they thinking that you are going to think "oh, whats the use! their so much work to prove this" Well fight back! At one point I didn't even care about the money anymore, I was just out for justice. Good luck and remember document everything and file against them in court.

Sep 05, 2009 12:44 AM #17
Anonymous
Stacey Sebastian
My broker just did this to me 4 days ago. He wrote me the check, post dated it and when I went to cash it...... Not enough money in his account?!?! He keeps coming up with random excuses about why it's not there..... 4 more days and...... It's amazing how fast bad news travels!
Apr 05, 2010 08:33 PM #18
Anonymous
jenny lett

Any body know in CA, can broker hold agent's commission because of not complit file?

Feb 25, 2011 08:17 AM #19
Anonymous
Sharon Stonewall

I am a full time realtor of 20 years in NY state - just had a CASH deal on a brand new spec home

for $500K that closed over a week ago- gave the listing company a $15,000 deposit - now I am told

I will have to wait another week before they send a check to my company which in turn will have to

pay me my split. All this will take over 2 weeks on a cash deal on a brand new house - no banks or

checks needed to clear, but the company paying the commission is a new start up KW company. I

think it is terrible to make an agent wait for the commission until they are good & ready to send out

a check - meanwhile I am sure they are enjoying the $15K deposit I got for them while I sit here waiting.

How disrespectful - I will try not to have any other deals with them if that is the way they treat other agents when it comes time to get paid!

Apr 09, 2012 09:27 AM #20
Anonymous
Cindy

I have been waiting for my commision check from my broker since April 5th. They sent me a docusign that had $112 deducted saying I had them order the wrong city cert. I don't order them processing does. on top of that they made my cut $203 less then what I was supposed to make. I signed the document because I had left the company already and i will eat the loss just to be done with this brokerage. Now I still haven't been paid my commision and have to file a demand letter. If you need to rip me of for a little bit of money why the heck are you in business. Glad I found this post I am going to file a complaint as well. I really did Not want to go this route but now I see brokers are doing this and it is not fair to us agents who do work hard.

Apr 20, 2019 02:21 PM #21
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