Realtor asked for advance on commission. Ethical violation?
4 Replies
Adam Byrne
Rental Property Investor from Los Angeles, CA
posted about 1 month ago
Hi BP!
My realtor in PA begged me to advance her several thousand dollars in cash before closing on a portfolio of properties in order to pay her personal bills. Due to some complications in closing, we only ended up closing on half of the properties, but she got paid the complete commission.
Since the closing, she has not paid back the advance or reconciled the commission payment.
I realize I screwed up by paying her. I suspect this is some kind of breach of real estate code of ethics; can anyone confirm this? Is she in legal jeopardy from this behavior?
Curious to hear what you think!
Adam
Wayne Brooks
Real Estate Professional from West Palm Beach, Florida
replied about 1 month ago
I don’t know of any Realtor ethical/legal issue.
Jennifer Lyles
Property Manager from Atlanta, GA
replied about 1 month ago
@Adam Byrne contact her Broker directly and explain the situation. They may be able to help you.
Mark Brogan
Investor from Roanoke, VA
replied about 1 month ago
answer would be no and contact their broker immediately @Adam Byrne
Adam Byrne
Rental Property Investor from Los Angeles, CA
replied about 1 month ago
Thanks for your replies. I conferred with my lawyer today who believes it’s a gross violation of ethics to demand payment before closing. In fact, in CA it’s a misdemeanor!