Realtor asked for advance on commission. Ethical violation?

4 Replies

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!


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!