Would you work for Free?

Profile picture for Shortsale SOLD
Situation: I recently worked under a brokerage who paid me a "salary" of $2000 a month guaranteed with a  40% commission split.  If I sold more than $2000 in commission that was the amount I would get.  Under $2000, I would still receive $2000.  No taxes or social security was withheld and no other benefits.  They fed me leads once or twice daily which was their justification for the low commission split.  

After 3 months of only closing one deal (their biggest one actually), they asked me to take my license elsewhere.  I had two pending contracts the following month and was told that I would not get paid for them.  Anything that is done with them, stays with them was their response  I have spoken with an attorney but he has advised that it is not worth suing them and to pay him to write a letter. 

Does anyone know if this is common practice? Do I have any rights? 
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November 18 2011 - Tampa

Replies (4)

Profile picture for TiffanyBond
Did you call your state's real estate commission?
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November 18 2011
Profile picture for Zilluminati
I once called the S.C.Residential Homebuilder's Commission, in SC, because a home-building customer wouldn't, or couldn't, pay me, and the lady had to finish rolling-on-the-floor-laughing-out loud, before she could tell me that they were not there to protect/help/assist me, they were there to protect the person who wouldn't pay me. I think it was in 1983. I wouldn't suspect it would be much different today.

Isn't the Client's relationship with the Broker? And, hasn't this been known to complicate an Agent's employment transitions?

I'm not a Lawyer and it sounds like a legal matter? Call the REC, the NAR, and a Lawyer. One out of three of them might help? I would call an Employment Law Lawyer, not a Real Estate Lawyer? A reasonable person might say it was ultimately up to the Client? And do you, and more importantly do the Clients, want to upend an existing contract to start over? Hopefully, all the question marks are an effective legal disclaimer. I'm not a Lawyer, but I do speak to them when I see them in public.
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November 18 2011
Profile picture for wordsmth
That's really a legal matter. However, since you consulted with an attorney and received his advice but seek additional input, here's mine. Disclaimer: I'm not an attorney. So certainly weigh your attorney's advice. However . . .

I'd suggest finding another attorney who could do a bit of arm-twisting. Something along the lines of: "Pay the commission on the two pending sales and my client won't make any waves. Fail to pay the commission and my client will go to the state licensing board and the state labor board. Your cost of defending any actions there--even if you win--will be far greater than the commissions."

Hope that helps.
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November 18 2011
Profile picture for Shortsale SOLD
Thank you everyone for your replies! I am considering taking it to the Board myself and seeing what happens.  I will definitely consult another attorney.    
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November 19 2011
 
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