Legal Question in Real Estate Law in California
I am a licensed Realtor, my Broker is Keller Williams. I recently represented an attorney. He hired me (Keller Williams) to find a tenant for his commercial property. He signed a lease listing and I performed. I found a winery to lease his building for 3 years with increases and extensions,
After the winery had all of the contingencies done and had alcohol services and the City approval, the Attorney refused to pay me. He said if I wanted to be paid to sue him. And If I sue him in small claims court (amount owed $4000) he will countersue me in Superior Court so I will have to hire an attorney to represent me.
Keller Williams will not sue him because their legal counsel and this attorney are very good friends. The Broker tells me I can take the client to small claims court but without their assitance. The listing agreement is in the name of Keller Williams, who do I sue, the attorney client or Keller Williams?
2 Answers from Attorneys
The way I understand it is that you work for a real estate broker, which represented the attorney in a real estate transaction. Thus, your employer should be paying your commission pursuant to your agreement with the employer. Then, the broker might cross-complain against its client for payment. If your agreement with your employer states that you only get paid commission when your employer gets paid, it behooves the employer to act to collect the income it is due.
If you have the usual arrangement of agents with brokerages, you are a 1099 contractor. If I am right, it will depend on the terms of your agreement with Keller Williams. I agree with Mr. Cohen that this beef is between you and Keller Williams. If your contract makes your share of the commission due when earned, they owe you the money and they can decide whether to go after their client. If the contract says due when paid or collected, then you have a more complicated beef. Technically they don't have to pay you until collected. But you have a right under the implied covenant of good faith and fair dealing to reasonable efforts to collect. Things get nice and muddy at that point.