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.