Heavyweight Realtor commission fraud

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Heavyweight Realtor commission fraud

Crystal Tynan
Napa, CA · Member since 2018 · 14 posts · 2 votes

I am a real estate agent and up until last week, I was working as an 'independent contractor' doing marketing and providing real estate assistance for a top real estate agent. When I gave my resignation, as her marketing director, she actively tried to hide the fact that she was about to accept an offer on a property she had promised me a commission on. She then lied to me and said she was taking the property off the market and I was due no commission. This is approximately $11k. I have a copy of the accepted RPA and NDA she made the clients sign, to prevent them from making contact with me again. I was the agent that sent them the disclosures. I have 100+ hours into this property and she was actively procuring, and hiding, the offer I initiated as we were discussing my resignation. 

I have been working on this house as the lead agent, with no pay, for 6+ months, under the condition I would be receiving 25% of her commission. I have several emails from her stating this, she confirmed this verbally to our broker and she signed an addendum to stating same. However, my broker is saying she isn't bound by any of that and I should just let it go. 

This is in addition to $500 she refused to pay me per a verbal agreement on another deal, and $26k she kept from me after she took back a client she referred to me after I got them to submit an offer on a property they ultimately purchased. 

I think my broker is wrong and her emails should be binding. Please advise. 

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Cody L.
Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
7y
Originally posted by @Crystal Tynan:

The excerpt I listed above specifically stated that emails can be considered a contract.

I’m also not referring to the purchase of real property. I am referring to an offer of employment, or terms of employment. These terms were offered, accepted, and executed. Then, knowing I was going to quit doing her marketing, the top agent intentiinally hid the remaining 2 deals from me to avoid paying me. 

“Generally, the elements of any legally binding contractual agreement include California Civil Jury Instructions (CACI) 302: Contract Formation—Essential Factual Elements offer, (2) acceptance, (3) consideration, and (4) no defenses. In California, the essential factual elements necessary to prove contract formation are: (1) the contract terms were clear enough so the parties could understand what each was required to do; (2) the parties agreed to give each other something of value [a promise to do something or not to do something may have value]; and (3) the parties agreed to the terms of the contract.1”

A recent case in the Court of Appeals of Texas decided March 30, 2017 (Khoury V. Tomlinson) held that “even a name or email address in a “from” field can be construed to be “executed or adopted by a person with the intent to sign the record and functions as a signature.”

The court’s reasoning was that even though the name and email address are automatically inserted into an email, nevertheless since the sender set up the email account in a manner so as to insert these items, they are considered as intentionally being inserted by the sender as a signature. The same would apply to a signature block in an email.”

But you’re right. I likely have no idea what I’m talking about. 

 I’m in your side. I think your in the right and I agree with your arguments re email agreements. 

I think the older the person your dealing with, the more likely to think it needs to be printed on a piece of tree, and signed with a quill. 

I had a 5.6m deal that needed to be extended. Agent was freaking out that we had to sign this form. I sent an email to the seller and said “you cool to extend 10 days?” He said “yes”. I said “me too”. Done. 

The issue is SHOULD you sue or push it? A wise man told me “I’d rather be rich than right”. She’s a scumbag. She should be dead to you. Don’t think about her anymore. Getting into a legal battle, even if you win, will do you more harm than good in the long run.  You don’t want to have a rep as a pushover. But you don’t want to have a rep as a litigious person either. especially if you’re staying in this field. 

That rat that’s screwing you will  get what’s coming to them. They always do. 

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  • Tom GimerBusiness Member
    DMV · Member since 2017 · 3k+ posts · 3k+ votes
    7y

    With $70k+ at issue I would try to find an attorney who could help preserve all the important relationships while at the same time putting enough cash in my pocket to make me happy.

    Emails can absolutely be used to support a breach of contract claim... including being a part of the agreement itself, with or without a signature.

    The broker here is conflicted. I would not be listening to him when considering my legal options.

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  • Bryan Zuetel
    Attorney · Orange County, CA · Member since 2017 · 242 posts · 99 votes
    7y

    @Crystal Tynan, I gather from some of your posts that you are a California real estate agent.  You would generally have two avenues to pursue.  First, look at your independent contractor/agent agreement with your broker to determine if there is any dispute resolution forum available through the broker for intra-office disputes.  Second, check with your local Realtor board for their procuring cause arbitration procedures.  I am a part of the Orange County Association of Realtors Professional Standards Committee and hear arbitrations and disputes like this all the time.

    3Reply
  • Brandon L.
    Real Estate Agent · Falls Church · Member since 2012 · 2k+ posts · 1k+ votes
    7y

    @Crystal Tynan I feel I have nothing to add since everyone above has filled you in on the steps you can take, but I am curious how in the first post the amount "stolen" was 11k, and further down the thread its 73k "stolen.

    If you made 73k for the broker or team leader you should have no problem making it on your own. Sometimes these situations can sting but the best thing to do is move on.

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  • Brandon L.
    Real Estate Agent · Falls Church · Member since 2012 · 2k+ posts · 1k+ votes
    7y
    Originally posted by @Jay Hinrichs:
    Originally posted by @Crystal Tynan:

    Thank you very much for your input everyone. 

     just don't quit until you get your money..  once you get your money move on.

     Good advice if it's switched to "Just don't quit until you get your money..once you move on get your money" If she really made 73k for the broker through her marketing abilities she can easily do it again and have peace instead of fighting a long negative court battle.

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  • Crystal Tynan
    OP
    Napa, CA · Member since 2018 · 14 posts · 2 votes
    7y

    I didn’t make the money from marketing, I made the money from commissions that she owed me per an agreement. This will be my first you’re going out as an agent completely on my own so it won’t be that “easy” for me to make $73,000 again. Thank you everyone for your help and for your input. I am moving to a new brokerage and the new broker hooked me up with an attorney who is taking my case on a contingency fee basis. After consulting with several attorneys, they all have the consensus that there is more than enough evidence she owes me this money, and there may also be fraud involved due to her attempts to cover up the transactions. I’ll let you know what happens. 

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  • Crystal Tynan
    OP
    Napa, CA · Member since 2018 · 14 posts · 2 votes
    7y
    Originally posted by @Brandon L.:

    @Crystal Tynan I feel I have nothing to add since everyone above has filled you in on the steps you can take, but I am curious how in the first post the amount "stolen" was 11k, and further down the thread its 73k "stolen.

    If you made 73k for the broker or team leader you should have no problem making it on your own. Sometimes these situations can sting but the best thing to do is move on.

     The most recent deal in escrow my commish would be $11k. There’s another $32k at stake for an additional deal that just received an accepted offer yesterday. Then there is the buyer she took the full commission on from several months ago, after assigning the client to me, which would have been a $26k commission for me. 

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  • Brandon L.
    Real Estate Agent · Falls Church · Member since 2012 · 2k+ posts · 1k+ votes
    7y

    @Crystal Tynan I still stand by my advice to let it go, but out of curiosity, who was named as the agent in the MLS on all these deals?

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