Unpaid commissions
Sellers or buyers who refuse to pay a commission after a sale or termination.
- Real estate mediation
- Broker & agent disputes
Real estate broker and commission dispute mediation
Disputes involving agents and brokers range from unpaid commissions to claims that an agent failed to disclose a defect or breached a fiduciary duty. These cases involve professional reputations and ongoing business relationships, so a confidential settlement is often worth more than a public verdict.
I mediate disputes between clients and agents, between buyers and sellers who also have claims against their brokers, and between brokerages.
Broker and agent disputes I mediate
Procuring cause
Two brokers who each claim they earned the commission.
Disclosure claims
Buyers who say their agent or the listing agent missed or hid a defect.
Dual agency conflicts
Claims that one brokerage favored the other side of the deal.
Listing termination
Disputes over cancelled listings and protection-period commissions.
Referral fees
Unpaid referral and co-brokerage fees between agents.
California rules that shape broker disputes
- Written agreements
- A claim for a real estate commission generally must rest on a written agreement under the statute of frauds, Civil Code § 1624.
- Inspection duty
- Listing agents for residential property of one to four units must conduct a reasonably competent and diligent visual inspection and disclose what it reveals, under Civil Code § 2079 and following.
- Fiduciary duties
- California agents owe fiduciary duties of loyalty, disclosure, and care to their own clients.
- Association procedures
- Commission disputes between REALTORS® often go to local association arbitration, while client disputes usually follow the listing or purchase agreement's dispute-resolution terms.
This is general information, not legal advice. Each party should consult its own attorney about its rights.
What a broker dispute settlement can include
- A reduced or split commission
- A payment schedule
- A repair credit funded by the brokers
- Participation by an errors and omissions insurer
- Mutual releases
- Confidentiality and non-disparagement terms
Questions about broker & commission mediation
Can buyers or sellers mediate a claim against their agent?
Yes. Many listing and purchase agreements require mediation of disputes with brokers who agree to mediate, and it is usually faster and less public than court.
Do commission disputes between brokers go to mediation?
Many go to association arbitration, but brokers can agree to mediate first, privately and quickly.
Is a mediated settlement with an agent confidential?
Mediation communications are generally confidential under California Evidence Code § 1119, and the settlement can include its own confidentiality terms.
Does the brokerage's insurer need to be involved?
Often. When an errors and omissions insurer may fund part of a settlement, it is best to have its representative take part.