Fired Agent can they still get commission

**rtrain82** · 10-01-2008, 06:42 PM

I was working with an agent that showed me a few houses and we made an offer on a house but it fell through in the attorney review period. We are firing this agent for various reasons.

We never signed any kind of agreement with him. Lets fast forward and say that I buy a house that he originally showed us or the one we made an offer on. Is he allowed to get the commission from the sale still if I am working with someone else?

**Mike Taylor** · 10-02-2008, 01:59 AM

This is IMHO, a little bit of a gray area. The question is which agent is the procuring cause. The first agent did originally show you the house, but you do not want to work with him and you did not write an offer.

I think the correct thing to do is talk to the old agent and/or broker and explain why you fired him and have them (the broker) agree in writing that no claims will be made on the commission.

**Malok** · 10-08-2008, 06:48 AM

Mike is spot on. Tough situation but it does come up now and again.

Personally, if you are the buyer - Your focus should be on getting the home.. I'd tell the new agent representing your interests the deal, and have him figure things out (procuring cause, contact other agent/broker, getting a release signed, etc).

**joelrunner** · 10-08-2008, 09:53 AM

Of course, all of us should be recommending that you first talk with your attorney about this matter, but here's my free, non legal, advice:

Statute of frauds requires that all real estate agreements be in writing. By not having a written agreement with you, YOU are not necessarily liable for getting that agent paid. (This rule varies by state, but for the most part, I'm pretty sure that is the case.)

HOWEVER, since that agent could be considered to be the procuring cause, he/she MAY have the right to get the other Realtor's commission.

The good news -- I doubt the agent you fired could have any enforceable claims against you.

The bad news -- they MIGHT be able to take the other Realtor to the local board or ethics committee and get all or part of their commission.

One last suggestion: Talk to your attorney. If you have established an agency relationship with your new agent, that agency relationship MIGHT override any prior rights the old agent has.

**joelrunner** · 10-09-2008, 01:56 PM

It's not a matter of you, the buyer having to pay them because you apparently don't have agency. The problem is that they might be able to take your new Realtor in front of the Ethics Committee and get THEIR commission if they can effectively prove procuring cause. If that happens, the new Realtor may be able to go after buyer for the commission. (Doubtful it would get that far, but you never know.)

**Malok** · 10-11-2008, 06:32 AM

@Joel - IMO, its simply not the buyer's problem. They shouldn't waste time trying to save the world, spending THEIR money on THEIR attorney.

As long as they tell the new real estate agent the deal, they are good to go and need to get back to buying a house. Let the new agent, not the buyer, figure it out. My 2 cents.

**joelrunner** · 10-11-2008, 11:09 AM

Malok - I don't know about your state, but in Colorado, Realtors are required to advise their client see legal counsel anyway. Not doing so could be reason for having our license revoked, and could potentially bring a lawsuit.

Rtrain -- good luck in whatever you decide!

**Malok** · 10-11-2008, 11:40 AM

Originally Posted by joelrunner

Malok - I don't know about your state, but in Colorado, Realtors are required to advise their client see legal counsel anyway. Not doing so could be reason for having our license revoked, and could potentially bring a lawsuit.

Heh, thats my point. Its the new guys job to figure this situation out.