Legal Question in Real Estate Law in California

Person demanding I pay them commission

I am a Real Estate Broker in CA. Recently a client was refered to me by a licensed associate to do the loan. Associate's sales person license is NOT and NEVER HAS BEEN under my license and we do NOT have any written agreement.

Loan was funded under a 3rd party (another Broker) and I indirectly received compensation. Associate is demanding payment from me, but funds are simply not available. I offered a nominal good-faith payment but they are demanding 50% of what they consider to be owed, or $2100 (total of roughly $4200).

She (and her husband, i think) has been sending many emails, tons of phone calls and they even stood outside my home knocking for almost 2 hours today. I wasnt here but neighbors called the Police. I have every intention to pay, but other issues have depleted all of my funds.

Other than (already failed) reasoning, what can I do to get them to back down?

OR what legal re-course does she even have, if any?

Thank you,


Asked on 7/03/08, 9:48 pm

2 Answers from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Person demanding I pay them commission

OK, first, as far as I know, there is nothing that obligates you to share your commission with this associate - it would be legal to do so, if you had had an agreement, but, absent an agreement between yourselves, the associate's claim is baseless. As far as I know, it isn't even a trade custom to pay for referrals, although persons acting as finders often ask for, and get, an agreement to pay them a finder's fee.

So, what to do about it? Giving advice on how to deal with nut cases is tough and risky. We are lawyers, not psychoanalysts. One possibility is to offer mediation or arbitration. Another is to agree to go before a small-claims judge and get a judgment, either for the right amount of money (?) or judgment for the defense (likely). Consider whether a DRE complaint would get you anywhere.

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Answered on 7/03/08, 10:59 pm
Mitchell Roth MW Roth, Professional Law Corporation

Re: Person demanding I pay them commission

You can let them sue you. Without a written agreement they may well not prevail. If they are harrassing you, call the police. If it still does not cease, you can get a protective order. Given that you are both licensed, you can suggest resolving the dispute by arbitration or mediation through the Department of RE.

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Answered on 7/05/08, 2:29 pm


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