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Updated over 6 years ago,
Broker holding out on paying agent's commission
I'm a licenced new york real estate salesperson. My broker and I signed a listing agreement for 6% with a seller on 11/22/17. I found a buyer who entered into contract with the seller on 3/4/18. I made the buyer submit proof of funds and a deposit of 6% to my broker's escrow. This way we collect our commission upfront.
The buyer had an inspection contingency which ended on 3/19/18. On 3/20/18, buyer indicated in writing that he was satisfied with the inspection and willing to proceed with closing. On 4/4/18 title came back clear however, the title company is requesting an affidavit from the publication company that published the buyer's LLC in the newspaper. This can take weeks or months.
The purchase contract stipulates that closing is scheduled for 4/16/18 with "Time of the Essence", but there's a chance that the buyer may not close on time due to the request being made by the title company
The listing agreement says commission is due when the broker produces a ready, willing and able buyer, and no later than the time of closing. So am I correct that my commission was due and payable on 3/20/18 when I produced a ready, willing, and able buyer? My broker wants to hold out on paying me until the title actually transfers, which I don't feel is right. I feel that my commission was rightfully earned on March 20. When I asked for payment on March 20th, my broker declined. When title came back on April 4th, again I asked for payment and my broker declined.
Since then I have been waiting patiently for 4/16/18 to arrive so that I can get paid, but now my broker is telling me he wants to "wait and see what happens". Apparently he's worried about the deal falling through and the buyer suing for his money back, even though no such scenario is forseeable because the buyer has given every indication verbally AND in writing that he intends to close. But even still, like I told him, "If the buyer doesn't perform, then what are you going to do, send him his deposit back?!" He said, "No." Then I said, "What if the title transfers, and 6 months later the buyer sues for his money back? Are you going to ask me for my commission back?" He said, "No." So then I sand, "Then what are you withholding my payment for?!!??!?" He couldn't give me a straight answer, which is very unsettling. So I told him, "Look, I understand that you don't want anything to happen, but my earnings are NOT contingent on your inability to accept the risks of doing business".
And actually the attorneys took care of all the closing paperwork last week and they're just waiting for the title company to release the title which will happen as soon as they get the affidavit from the publication company. I really don't understand what my broker is so concerned about.
I joined this broker in October of 2017 but I feel like I made a huge mistake. I sent him a notice today via email demanding payment no later than 5:00pm 4/16/18 and I threatened to notify the MLS board and the department of state if he doesn't pay me. This is very unsettling. What recourse do I have to get paid if the buyer doesn't perform and close on the day stipulated in the contract?