Legal Question in Legal Ethics in California
My husband and I were real estate agents (salesperson - independent contractors) for a broker (the corporation - one officer). The broker showed the chart for splitting commission and we agreed. It was simple division - 50/50, 60/40, 30/70. But, when the first check came, the broker deducted 4% of total commissions, then divided to the commission split ratio. We asked him why, and he said "this will be company's legal fund and this will be used to protect you."
Now, we terminated the independent contractors agreement with the broker in July, and we total contribution to the brokerage firm is about $26,000. During that term, we did not have any disputes, and we want the money back. We also learned after we left the company that the broker had a few lawsuit and he used our money to fight himself. Also, not all agents contributed to the legal funds.
We would like to know if we have a valid case.
Thank you.
1 Answer from Attorneys
It all depends on what your written agreement said and if it provided for this fee. If it didn't then he might owe you the money. By the way didn't he or you have E & O insurance?
Much better idea than a fund. Remember that next time you make a deal with a broker.
Good luck and hope that helps.
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