Commission Clawback 



In Broker’s Remarks on an MLS, it states the following: “Cooperating Broker will pay Listing Broker a Referral Fee of 40% of the Cooperating Broker Commission if the Listing Broker has taken the Buyer through the property.”

Will this work, legally?


No. The wording is insufficient. This type of approach could be properly structured as a bonus but not as a penalty.

Brian Madigan LL.B., Broker

Comments 1

Leave a Reply

Your email address will not be published. Required fields are marked *