Legal Question in Real Estate Law in California

Re: referral fee or commission?

Your question seems to call for personal advice as much as legal advice; I would not be in a position, as a stranger, to comment on whether working under your sister would be a better idea than the alternatives.

However, I will point out two very general aspects of your situation that you might think about, then make a general suggestion.

First, you should have a written contract with your broker. This is a DRE rule and if there is no written contract between a broker and his/her salespersons, the broker can get in big trouble. I would suggest you read your contract very carefully to see if it says anything about assignments of rights, successors, and so forth. The general rule is that contracts can be assigned but the assignor remains liable (perhaps along with the assignee) for performance, payment etc. due the obligee (you).

Second, there is a rather general legal principle that the seller of a business or substantially all of the assets of the business remains liable to creditors or potential creditors of the business sold. This may give you a basis to assert your right to be paid under your originial agreement in small claims court.

My suggestion is to tell your broker that you intend to discuss the way he or she is handling payment of your share of the commission with the DRE to see if it passes muster under DRE regulations. You don't have to make it sound like a threat, just say you are puzzled about the process. Maybe this will get you a voluntary payment. If not, the actually go to the DRE and make a complaint, or at least get their assistance in deciding whether you have grounds to complain. I think you do, but your facts don't fully explain the situation.