Once a house or building is sold, there are a number of factors that need to be taken into account to complete the transaction. One element that needs to be considered is how the realtor will be paid for their work on the transaction.
Process
When a broker enters into a contract with a seller or buyer, both sides agree on the commission that the agent will receive. The commission, which is written into the contract, is typically between 5 and 7 percent of the property selling price but in some instances can be as high as 10 percent. The broker receives their money once the transaction has completed.
Failure to Receive Commissions
However, there may be some instances when the real estate broker does not receive their agreed upon commission. Usually, this happens when the seller refuses to pay the realtor for their services. When this happens, the broker can sue the seller for failure to pay. The agent needs to prove that they have a valid real estate license; there was a valid real estate contract between the two parties; the terms of the contract were performed by the broker; and the seller has refused to pay any fees owed to the agent.
When the realtor does file a lawsuit against the seller, the court can award the agent any fees that were owed and any associated fees and costs that were incurred due to the lawsuit.
However, there may be some instances when the agent feels that they are entitled to their commission and do not receive any money. In order for this to happen, the seller needs to prove that the broker breached their fiduciary duty to the seller and/or the agent did not possess a valid real estate license when the transaction occurred.
Conclusion
It can be useful to speak with a real estate or business attorney if a real estate broker fails to receive their commissions or feels that they are entitled to a larger amount of money. A lawyer can help to review the agreement between the seller and agent and determine what the appropriate sum of money that the realtor should be receiving. In addition, the attorney can explain the various ways in which the broker can recover their fees. Furthermore, the lawyer may be able to explain any issues that the broker may face while getting their commission from the seller.
.rw.