Legal Question in Real Estate Law in California

Unless there is a special provision as to Broker's, there is no penalty for failure to pay a debt. You can collect interest if it was agreed to. Contact the department of real estate to see what special options you have [will they suspend his license until he repays you; if so, you will be out of work as to that broker?]. Otherwise, you have to tell him that you need the money and unless he starts to pay you you will have no choice but to sue him in Superior Court. At that point, he will probably let you go.

Advice should best come from a lawyer who has read the promissory note and understands the underlying obligation. Is the debt the result of something connected with your activity as a salesperson, for example, your commission or draw under your employment contract with the broker? If so, I'd run, not walk, to the DRE complaint desk. If it is due to something else, the DRE may not be interested.

Do you have a feel for how the business is doing? A lot of real estate offices have closed or merged in the last 2 - 3 years, and it isn't over.

The express provisions of your DRE-required employment contract with the broker may be crucial in determining your rights if there is a bankruptcy or similar problem coming down the pike. Probably time for you to make sure you have a complete and current copy in your personal possession. Also be sure your have other relevant papers in your personal possession in case the office doors are locked some Monday morning.

The 'penalty' is getting sued for the debt along with any interest specified in the Note.