Expert: Hans Weber, Licensed Broker Associate - 1/3/2010

Question
if an owner refuses to pay a broker his commission, the broker seeks relief by:
A)bringing in a court action
B)filing formal complaint with license entity
C)filing a mechanic's lien
D) bringing quiet title action against buyer

Answer
Hello Ryan,

Thank you for your question.  I can only answer for New York, but you can presume similar conditions in other states.

Rarely does a seller try to evade payment of the brokers' commission.

Real estate agents work very hard with no compensation until they have a successful transaction that closes.  If it does not close they do not earn a penny.

New York now has a law to protect the broker from not being paid.  

The Commission Escrow Act and specifically Real Property Law Section 294-b require the disputed commission shall be deposited with the county clerk or other mutually agreed upon party until it is resolved.

The process of settling the differences can be
1  written agreement
2  arbitration
3  in court
4  or any other process agreed to

Hope this helps you out.

Hans