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Updated about 7 years ago on . Most recent reply
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Agents - Ever sued a client for failure to pay renatal commission
Quick overview:
I'm a licensed real estate agent in MA. Recently, I got a call from a desperate client. The home he and his wife have lived in with his Mom for many years was about to be sold following her passing, as it was his Mom's house.
He and his wife needed a new place to live ASAP. The siblings were applying intense pressure to get him out FAST. He stated that he filed for a restraining order against is sister, so it sounded like the situation was pretty bad.
I felt for the couple, so even though there wasn't a lot of income riding on a rental commission, I shattered my schedule to accommodate them. We ran all over the area showing multiple homes - and I was successful in finding a place for them.
The terms of the rental stated that the renter had to pay a full month commission, which they would divide between both sides.
The landlord's agent didn't collect a full month commission. They collected their half and the renter promised to pay me directly.
I have a long string of text and email messages from the renter promising to pay, and even a false claim of dropping a check off at my office.
And then he stopped responding to emails, calls and texts.
After more than 2 months, I finally filed a small claims action against him, with an estimated hearing date about 4 months away. I texted a photo of the small claims form to him to see if he wanted to make this right - no response.
So does anybody have any advice on how to best prepare for the hearing? It's only $850.00 plus $50.00 in court costs, but more than anything else, it's the principal.
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UPDATE - we had our court date and the defendant (the guy who has not paid me the commission due for his rental) was a no-show. That means that I was awarded a default judgment in my favor, which includes the $850.00 commission and $50.00 court cost. Interest started to accrue 12% annual interest from the date I first filed the complaint.
The next step is that I wait for 30 days (9/1/17) and can then ask the Clerk of the Court for an "order to show cause", whereby the defendant has to show a good reason that he cannot make payment.
If he fails to show up or fails to show an adequate reason that he cannot pay, I can ramp up the collection efforts up to wage garnishment or asset seizure.
He might be hoping that I'll just forget about this and go away. He's in for a rude awakening.