Legal Question in Real Estate Law in California

Immediately cancelled the listing? How is that possible? You also said the listing agreement had three weeks to run.

Also, I question whether any bank has a "standard approval letter" reserving a right to pursue a deficiency judgment in the future. Deficiency judgments in the future are not "standard;" they are an example of over-reaching that is contrary to the core notion of a short sale. Any bank that asks for deficiency rights after a short sale should be told to stuff it and proceed with their foreclosure.

I guess Mr. Whipple is not very familiar with short sales. He should know that not only are pretty much all lenders including a reservation of deficiency rights in their form approval letters, such a reservation is not contrary to the notion of a short sale at all. In fact some lenders, most notably BofA have been going so far as to assert that a short sale gives them deficiency rights on a purchase money loan that would have been prohibited by law otherwise. In any case, at its core a short sale is nothing but a release of the security in exchange for partial payment on the debt. Now I agree with him that if a lender will not negotiate away that reservation, there is no benefit to the seller in going through with the sale and the seller/borrower should tell the bank to stuff it. But that is the position banks are taking pretty much across the board. Turning to your problem, it seems you really know your rights here and are just looking for affirmation. You begin with mediation. I would also suggest you submit a demand for your commission into the current escrow. If they will not pay you and you cannot negotiate a resolution in mediation, you then file suit for your commission. Obviously you cannot give all the facts and details here, and what you say is only your side, but what you have described sounds like a good case. If you would like legal assitance with your situation, I would be happy to meet with you in my San Jose office for a no obligation intital consultation.

As a licensed broker, or salesman, you are supposed to know the rules regarding listings and commissions. You have the right to file a commission dispute and claim against the other agent/broker with your local Board.