Do I still get my commission split if I change brokers before my listing closes?

Question

It's scheduled to close within a week, but I have 2 new listings I want to write up, but would prefer to do it with my new potential broker. I also have to buyers wanting to write up contracts. I wasn't sure if my broker could keep all of the proceeds if I'm no longer with him.

The reasong I'm considering changing is that I would be going from a 60-40 split to a 75-25 split.

Answer 1

Don't count on it. You need to remember that you are merely a representative of your broker. The listings and pending purchase contracts are technically your brokers listings and contracts and you are paid a commission from the broker per your contract with the broker. If you break the contract with your broker, he/she is no longer legally required to pay you anything. Still, I have known brokers to be cool about a transition from one firm to another, but have also known others who have left money at their old company too. Others claim that some state laws allow you to keep these unpaid commissions, which may be true for other industries, but not real estate.

I suggest you have your new broker write up any new (future) business in his name only such that when he becomes your broker a week later, he can give it back to you with ease. If you don't trust your new broker enough to do this, you need to find another broker who you can trust! Then, get your money from your closing next week and move on!

Answer 2

If it's under contract, I'm pretty sure you will still get paid. When I sold real estate there was a guy who left to start his own company but I had one of his listings under contract. I'm almost positive he got paid for that transaction even though he had left. If I remember right I even asked the broker something about it and he said the guy would see it through to closing. He was at the closing and I think he mentioned something about the broker paying him.

Answer 3

All listings belong to the brokerage agency and, as such, the brokerage is fully entitled to the monies derived from transactions under the brokerage's licensure. Whether or not your brokerage will split with you depends on the brokerage and its agreement with you.

In the absence of any written contract defining what is to occur in such a situation, the brokerage firm does not have to split anything with you unless they're 'good guys'.

Answer 4

In most states, you should be paid a commission (based on the arrangement with your broker) on a deal that you put together and it closes. It doesn't matter if you change brokers.

Answer 5

I believe the protocol is that if a sale was made in the previous office that office, that contract, still stands, and you should get your split.
If you have 2 new listings that haven't been completed with the old office, then bring them to the new one.
If the buyers did not complete a deal with your old office then bring them to the new office.
As long as a formal contract was not made you can bring this to the new office.

Answer 6

in most cases seeing how the transaction started with your current broker you should finish it with them...they may be able to go after you if they find out you switched mid transaction....and you need to ask yourself what if the best thing for your clients...not just the money you will make.

Answer 7

You should have signed an employment or independent contractors agreement. There should be a section in that agreement that spells out what happens in this situation.