Commission dispute between agent's in Pennsylvania

Is a verbal commission agreement between agents in Pennsylvania enforceable? I worked on a listing with another agent (his listing), who’s also the broker of record / owner of brokerage, and we had a verbal agreement to split a fee 50/50. Obviously, I should have had it in writing, but as he was my “boss” and we went to college together, I let my guard down and we agreed verbally. I spent a great deal of time “packaging” this investment property to get it ready for sale to the market. We had simultaneous competing bids from two different buyers - he brought a buyer to the table and I brought a buyer to the table on the same day. My boss said the property owner chose his buyer’s deal as he said it was a better number and terms. My boss said we were still good for 50/50. He ran with the deal and gave me updates along the way. And then about 2 months in he said deal wasn’t looking good and could fall apart - wasn’t shocked as this happens. I jumped into to help and thought we were all good. He then sent me a few more emails with more indications that deal may fall apart, but said he’d keep me posted. After the holidays I checked in with him to find out status and if deal was ready to move to closing. He said deal had died and said I should move on. I checked public record and the deal with his buyer had actually closed right before the holidays. Basically, he lied, stiffed me on the fee and attempted to cover up his actions.

What would you do? What steps would you take?

Well you got life lesson number one, never trust anybody, especially in real estate sales.

I would have a face to face with a voice activated tape recorder in my pocket and maybe my cell on too, and say I double checked on that property at # such and such and it closed and you got paid, are you so screwed up financially and ethically that you thought nothing of violating our 50/50 agreement and decided to steal my share like some common thief. When he tries to weasel out or plays the pretend upset game, you just quietly say I hope you have enough money for attorneys fees.

“PA RE Commission is next step”

Your RE Commission would sure take a dim view of your Broker’s actions as he has a high standard he has to live up to and follow, particularly in regard to dealing with his agents.

So here’s what I’d do…first I’d pull my license from his office, then notify him in writing that unless he antes up and pays you what he promised immediately you’ll take him to PA REC for action…and you have provable evidence of that agreement.

I’d be surprised if that doesn’t get you a positive result w/o your having to do more, but be prepared to go forward to the REC if he doesn’t comply.

Find a new boss. Consider reporting him to the state office that polices licensed agents.