Commission Disputes
In a perfect world a client purchases or sells a property and their real estate brokerage receives the commission, as set out in the written agreement between it and its clients. Unfortunately, sometimes, it doesn’t go so smoothly, and disputes arise.
Commission disputes between agents or between agents and clients can arise in various ways, but some of the more common are when buyers or sellers are subject to agreements with former real estate brokerages or when relationships break down between a real estate agent and their client.
Commission disputes are almost always contractual and based on a written buyer representation agreement, listing agreement, or referral agreement. Although the key to minimizing disputes is to have clear signed contracts, we are aware that we do not live in a perfect world and in the high stress and fast paced environment of getting a deal done, the clarity of the paperwork can fall in between the cracks.
The legal right for real estate agents to collect commission is regulated by the provisions of REBBA and the rules and regulations of local real estate boards and commission disputes between realtors can play out through arbitration procedures governed by the respective local real estate board or may be dealt with through the civil courts.
Disputes between clients and real estate brokerages are primarily dealt with in court.
Although these disputes can appear simple at first, they rarely are.
Gill & Mulholland LLP has extensive experience in handling commission disputes in courts and before tribunals. Our experience and reputation are known in the industry and therefore we leverage this to see whether these matters can be resolved outside of court. However, when a negotiated resolution is not an option, our experienced trial lawyers are prepared to litigate these matters and work with you to achieve positive results.
If you are involved in a dispute over commission or are concerned that you will be, do not hesitate to reach out to us for guidance and support.