Avoid Legal Battles over Broker Commissions

Commissione agreements that spell out how brokers are paid typically use form documents. The commission formula sometimes changes, but the terms and conditions usually stay the same. Consequently standard terms and conditions of commission agreements are often ignored by brokers and owners once the agreement is signed. Since the broker?s income is tied to the terms of those agreements, close attention to details are vital to all parties involved.

Recent lawsuits stemming from disputes over broker commissions reveal tough lessons about the importance of paying close attention to commission agreements.

A building owner in Detroit was forced to pay a commission because the original agreement did not contain an expiration or termination date. The building owner argued that there are a number of key terms understood and agreed to prior to signing the agreement that were not contained in the final written agreement. The judge overruled this argument stating that the contract was clear as written.

Judges and juries are not real estate professionals. The term ?procuring cause? may have a standard definition in the real estate business, but mean nothing to a juror. All parties involved must make sure the language is clear. A judge or jury will not rewrite a contract to save either party from a bad business decision.

Even after a favorable commission contract is successfully negotiated and written, it?s not OK to simply file it away. Either party cannot claim they forgot about the agreement.

The lesson here is to carefully note important terms and conditions, especially those that relate to performance, compensation, and termination.

Legal disputes are not unique to any location. Judges and juries nationwide are showing resistance to insert terms into commission contracts or allow parties to ignore the terms of a contract. Recently there?s been an increase in the number of disputes. Some have settled out of court, yet a fair number have gone to litigation. This can be reversed through the efforts of brokers and owners who invest more time and effort putting together agreements and abiding by them. This is the best method of prevention.

Good luck to you,

Posted by Rick Brenkus on December 13, 2008 at 12:00 AM

About Rick Brenkus
Rick Brenkus is affliated with Keller Williams Realty the marketplace, which is located in Henderson, NV. For further assistance please use the contact information located on the right.

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Local Information for Henderson, NV

Latitude: 36.029249 -- Longitude: -115.025286

ZIP Codes for Henderson, Nevada	89009 89011 89012 89014 89015 89016 89044 89052 89053 89074 89077
Area Code for Henderson, Nevada	702
Time zone for Henderson, Nevada	PST

Other Area Cities: Henderson, NV Boulder City, NV Las Vegas, NV Paradise Hill, NV

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The City of Henderson recently celebrated its 50th Anniversary (2006). The township of Henderson emerged in the 1940s to supply our nation with magnesium, the "miracle metal" of World War II. Although "born in America's defense," Henderson's future after the war was uncertain until April 16, 1953 when city incorporation papers were signed. Film History Henderson is frequently featured on the TV drama, CSI: Crime Scene Investigation as the location of residence of a victim or other person of interest. The now-demolished theme park "Old Vegas", which was located in Henderson, was used for several outdoor scenes for the Western TV series Gunsmoke (The property is now the site of a housing development, also named "Old Vegas"). -- Source: Wikipedia.com

Nevada 2000 Census Population Profile Map

	Henderson	Nevada	United States
Population	175,381	1,998,257	281,421,906
Median age	35.9	35	35.3
Median age for Male	35.3	34.5	34
Median age for Female	36.4	35.6	36.5
Households	66,331	751,165	105,480,101
Household population	174,355	1,964,582	273,643,273
Average household size	2.63	2.62	2.59
Families	47,111	498,333	71,787,347
Average family size	3.05	3.14	3.14
Housing units	71,149	827,457	115,904,641
Occupied units	66,331	751,165	105,480,101
Vacant units	4,818	76,292	10,424,540

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Avoid Legal Battles over Broker Commissions

Local Information for Henderson, NV

Latitude: 36.029249 -- Longitude: -115.025286

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