You Are Not Allowed to Chase the Seller’s Lawyer (TRREB)

Question:

We are the Co-operating Brokerage. No commission check shows up. The Sellers’ lawyer won’t return calls.

Is the listing Brokerage still responsible to pay the cooperating Brokerage portion of commission?

Answer:

No, not unless the Listing Brokerage was the Principal.

If it were Toronto, then you are precluded from contacting the Seller’s lawyer without the permission of the Listing Brokerage. If there is a shortfall, then the deposit is to be shared proportionately. The same is true for expenses if the Seller is to be sued.

If the Listing agent declines to sue, then the Co-operating Brokerage can take an Assignment of the Listing and sue the Seller directly (and contact the Seller’s lawyer).

If successful, the costs and expenses are paid first, then the Co-op commission in FULL, and if there is anything leftover it is to be split 50/50 between the two brokerages. This means that the Co-operating Brokerage gets one half of the Listing Agent’s commission. The particular rules vary Board to Board.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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