954-767-9662
Real Estate Broker Commission Dispute Attorney in South Florida
When a commission goes unpaid, gets split the wrong way, or is claimed by a broker who never earned it, the money at stake can be significant and the relationships involved are often ones you need to keep. Michael L. Feinstein is both a Florida real estate attorney and a licensed Florida real estate broker, with more than 30 years of experience in South Florida real estate transactions and litigation. That combination means he reads a listing agreement, a buyer agreement, or a co-brokerage arrangement the way the industry actually uses it, and he knows how to enforce or defend it in arbitration or in court.
Who We Represent in Commission Disputes
- Brokers and brokerages owed a commission by a seller, a buyer, or a cooperating brokerage.
- Sales associates who were shorted on a split or left out of a commission they helped earn. Under section 475.42(1)(d), Florida Statutes, a sales associate can only bring a claim for a commission against their own employing broker, so the strategy often runs through the brokerage.
- Sellers and buyers facing a commission demand they believe is not owed, such as a claim after a sale fell through or a claim from a broker who did not bring the buyer.
Common Broker Commission Disputes in Florida
- Nonpayment after closing: the commission was earned but not paid, or not paid in full.
- Deals that fall apart: whether a commission is owed when a ready, willing, and able buyer was produced but the sale never closed.
- Commission splits and co-brokerage: disagreements between brokerages, or between a broker and a sales associate, over how a commission should be divided.
- Procuring cause: two brokers both claim they are the reason the buyer purchased the property.
- Buyer agreement disputes: disagreements over what a buyer agreed to pay, or what happens when the seller does not cover buyer-side compensation.
- Unclear or oral agreements: commission terms that were never put in writing, or that were written vaguely.
Florida Rules That Shape Commission Disputes
| Rule | What It Means for Your Dispute |
|---|---|
| Section 475.42(1)(d), Florida Statutes | A sales associate may collect compensation only in the name of, and with the consent of, the employing broker, and may sue for a commission only against that broker. |
| Section 475.278, Florida Statutes | Florida licensees work as transaction brokers or single agents, and licensees are presumed to be transaction brokers unless another relationship is set up in writing. Florida does not allow dual agency. |
| NAR practice changes (August 17, 2024) | MLS participants working with a buyer need a written buyer agreement before touring a home, with compensation stated in a clear, fixed way. Offers of compensation can no longer appear on the MLS. |
| Section 95.11, Florida Statutes | A claim on a written agreement generally must be brought within five years. A claim on an agreement not founded on a written instrument generally must be brought within four years. |
Arbitration or Court?
Where you resolve a commission dispute depends on who is involved. When both sides are REALTORS® at different firms, Article 17 of the REALTOR® Code of Ethics generally requires them to mediate or arbitrate through their local association instead of going to court, and procuring cause disputes between cooperating brokers are handled the same way. Disputes involving a seller or buyer, a licensee who is not a REALTOR®, or a straightforward breach of a written commission agreement often belong in court. Choosing the right forum early can save months.
How We Handle a Commission Dispute
- Review the paperwork: the listing agreement, buyer agreement, cooperation or referral agreements, independent contractor agreements, and the closing documents.
- Pin down who owes what: identify which party actually owes the commission and whether it was earned under the agreement and Florida law.
- Demand and negotiate: many disputes resolve after a clear demand letter that lays out the agreement and the deadline to pay.
- Mediation or arbitration: represent you before the local REALTOR® association when Article 17 applies.
- Litigation: file or defend a breach of contract claim when the dispute belongs in court.
Why an Attorney Who Is Also a Broker
Most commission disputes turn on industry practice as much as on the law: how a co-brokerage arrangement was set up, what a buyer agreement actually covered, or who really brought the buyer to the table. As a licensed broker, Michael understands how these transactions work day to day. As a litigation attorney, he knows how to prove it. Learn more about Michael L. Feinstein.
Frequently Asked Questions
| Question | Answer |
|---|---|
| Can a sales associate sue a seller directly for a commission? | Generally no. Florida law allows a sales associate to sue for a commission only against their employing broker. The brokerage pursues the seller or other party. |
| Do two brokers have to arbitrate a commission dispute? | If both are REALTORS® at different firms, Article 17 of the Code of Ethics generally requires mediation or arbitration through the local association rather than a lawsuit. |
| How long do I have to bring a commission claim? | Under section 95.11, Florida Statutes, generally five years for a written agreement and four years for one not founded on a written instrument. Talk to an attorney well before the deadline. |
| What if the commission agreement was never put in writing? | A claim may still be possible, but it is harder to prove and the deadline is shorter. Gather every email, text, and document that shows what was agreed. |
| What should I do first? | Collect the listing or buyer agreement, any cooperation or split agreement, and the closing statement, then have an attorney review them before you send a demand. |
Related Resources
- How to handle a broker commission dispute in Florida
- Common causes of broker commission disputes
- Broker commission disputes: new rules and enforcement trends
- Florida DBPR license verification
- Florida Realtors: written buyer agreement FAQs
Talk to a South Florida Broker Commission Dispute Attorney
If a commission is in dispute, the agreements and deadlines matter from day one. Call Michael L. Feinstein at 954-767-9662 or contact us to discuss your situation.
