In 2024, a licensed real estate agent engaged a salesperson to market and facilitate the sale of a residential property. The salesperson diligently conducted open homes, negotiated with prospective buyers, and successfully secured a buyer for the property.

 

The agent and salesperson had a written agreement stipulating commission on the sale price, payable upon the successful completion of the sale.

Upon the property's sale, the agent received a commission. However, the agent withheld the salesperson's agreed-upon commission. Despite multiple requests from the salesperson, the agent failed to release the owed commission.

The salesperson lodged a formal complaint with the Real Estate Agents Licensing Board (REALB), providing evidence of the agreement and communication records.

 

REALB initiated an investigation, which included mediation between the parties. Following the mediation, the agent agreed to pay the withheld commission in full to the salesperson.

This case highlights the importance of adhering to contractual agreements and the role of regulatory bodies like REALB in resolving disputes. It highlights the need for transparency and accountability in commission payments within the real estate industry.

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