A real estate broker is an important part of real estate transactions. Some of their job responsibilities include writing contracts and overseeing transactions for sales and purchasing activities on homes, as well as land and commercial properties. Although they are a great help during this process, sometimes there are disagreements over whether or not they should receive commission.
Brokerage commission is the payment that the real estate broker will receive after successfully selling a property. When problems arise over whether or not they will receive the commission, there are a couple of factors to consider. First, in order to get this commission in New York, the broker must be licensed in the state of New York. It’s also important to note that a real estate agent has no right to sue for the commission unless the broker has previously signed the right to the commission to them.
This now brings us to the Real Estate Broker Employment Contract Agreement, which is a written employee agreement that is established when the owner of a property lists it with a broker. This contract is important because it clarifies the role of the broker, and whether or not they will receive brokerage commission. We should point out that if this contract is not created, then it is assumed that the broker will receive the commission if and when they successfully complete their job. The broker must also show that they were the reason for the sale.
Another problem that can arise is if the amount of commission was never stated in the agreement. When this happens, the broker will receive a fair percentage of the commission.
As you can see, this is a sensitive subject among real estate brokers. That’s why we recommend having a New York real estate lawyer help you draft a contract agreement before the property is sold. If it’s already too late for that and you’re in a legal bind over the commission, give our New York real estate lawyer, Gary Watchtel, a call.