Recovering Unpaid Commissions
Securing Unpaid Commissions for Commercial Real Estate Brokers
Commercial real estate transactions are often complex.
Real estate litigation and particularly
real estate commission disputes arising from such transactions are usually fact intensive and turn on
their own unique facts. While a thorough written listing agreement can
be extremely helpful to protect rights to commission compensation earned
in a commercial real estate transaction, controversy and disputes can
and do arise before and after the sale of a commercial property. Where
no written listing agreement is in place, entitlement to commission compensation
may turn on the issue of procuring cause. Procuring cause disputes can
be very contentious and predicting an outcome in litigation or arbitration
of a commission dispute between a broker and parties to the real estate
transaction or another broker is exceedingly difficult.
The Challenges of Determining Procuring Cause
According to The Florida Supreme Court, procuring cause is to occur (outside
of an exclusive listing agreement) where the real estate broker or agent:
1) initiates negotiations by doing some affirmative act to bring the buyer
and seller together, and
2) remains involved in any continuing negotiations between the buyer and
the seller, unless they intentionally exclude him or her.
Understanding Listing Agreements
Listing agreements will likely be enforced according to their terms and
conditions. If a broker fails to satisfy the conditions to compensation
under the contract, the broker may be denied compensation despite the
expenditure of substantial efforts to secure a successful transaction.
Even though a broker may not be entitled to compensation under the terms
of an exclusive listing agreement, it is possible the broker may still
be entitled to compensation if the broker was the procuring cause of sale.
Seeking Knowledgeable Legal Representation
If you are a licensed broker entitled to compensation from a successful
commercial real estate transaction that would not have occurred without
your efforts, but have not been paid what you earned, you need experienced,
skilled legal counsel on your side. Whether you are facing the prospect
of litigation or arbitration to enforce your rights, having experienced,
competent legal representation could make the difference in recovering
the commission you earned through your efforts and/or under the terms
of a listing agreement or being stiffed.
To learn more about your legal rights and legal options based on a commission
dispute, make sure you contact an attorney who can guide you effectively
and help you recover what you are owed. Protect your right to commissions
as a real estate broker by contacting Gregg H. Glickstein, P.A.
Contact Gregg H. Glickstein, P.A.
to get started on your case today.