What steps can I take against a broker who is not paying an agent their residuals and commissions?

UPDATED: Oct 1, 2022

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What steps can I take against a broker who is not paying an agent their residuals and commissions?

The broker is failing to pay out residuals to multiple agents no longer under his agency. Residuals have been paying out until recently. Also, the broker continues to deduct additional fees for marketing and retention when there is no marketing and retention taking place. The broker owes thousands of dollars to multiple agents no

longer under his agency.

Asked on March 4, 2019 under Business Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

You sue the broker: if the broker is not paying amounts due under the terms of the commission or employment, etc. agreement(s) (whether written or unwritten/oral, since an unwritten agreement of this type is enforceable) between the broker and the agents, the broker is committing breach of contract. The agents can enforce the terms of those agreements in court and get a court judgment or order requiring the broker to pay as per the agreements. If there are multiple agents involved, it may make sense for them to jointly hire an attorney to sue the broker (so as to share or spread the cost).

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