Legal Question in Real Estate Law in Massachusetts

Real Estate Referral

I am employed by a real estate office that is part of a corporation. I started in June 2006. One day I was handed an e-mail by my manager (addressed to him) and told to call the people they were looking to purchase a home. I worked with them and subsequently did sell them a house. Seven months after this (3 months after closing) I was told this was a referral and that I owed the the relocation department 35% of my commission which they now plan to take out of a future commission. I never signed a contract nor received any inquiries from the relocation department as I later found out was standard practice for this type of procedure. My question is Am I responsible to pay them the 35% as I never signed a contract or was informed of the referral procedure.


Asked on 3/17/07, 2:42 pm

2 Answers from Attorneys

Herbert Cooper Law Offices of Jameson & Cooper

Re: Real Estate Referral

In any situation, there are legal rights, and then there are wise choices of action.

As far as legal rights, for any given situation, the facts would have to be reviewed to determine what expectations were reasonable, and whether someone's failure to provide notice caused the other person to act differently than they might otherwise have done. It is impossible to answer your question without knowing more, but pertinent facts might include whether you knew it was a referral from the corporate relocation department, and whether it was reasonable for you to know that they would be entitled to a portion of your commission (e.g., were you aware that the office had to pay a third as well, if that is the case).

If you are paid on commission, your contract should set forth the terms of your agreement. If those terms are violated, you may have a legal claim, depending upon the specific facts and circumstances. However, you also need to think about your relationship with the brokerage company. If the value of your employment with the company is more important to you than the commission, you may wish to press your rights only so far.

Otherwise, you should be prepared to part company with the brokerage house if they are going to act in a manner which you feel is unfair. If they attempt to reclaim the commission, you should hire an attorney, if it is a significant dollar amount.

Read more
Answered on 3/17/07, 3:41 pm
henry lebensbaum Law Offices of Henry Lebensbaum (978-749-3606)

Real Estate Referral?

The previous advice is an excellent place to start.

YOur next step is to take all the relevant documents to be reviewed by a contract attorney.

If you need assistance, contact me.

Read more
Answered on 3/17/07, 11:10 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in Massachusetts