Collecting Commission

Brokerage Uses Oppression Remedy to Collect Commission #422

Legally Speaking

An Ontario brokerage recently used a modern corporate remedy to collect its commissions, when the principal of a corporate seller stripped virtually all the assets out of the company, leaving the seller an empty shell with no money.1 Some legal background is useful. Statutes require directors to make reasonable business decisions in light of all

Commission Due Despite Extension of Completion Date #405

Legally Speaking

In general, a brokerage must have a contract with a person to claim commission from that person. In each particular set of circumstances, the wording of the contract determines the brokerage’s entitlement to the commission. In Clause 5 of the Multiple Listing Contract, a commission is payable where a legally enforceable Contract of Purchase and

An Agent’s Duty of Care – Commission Cases Continued #360

Legally Speaking

By Gerry NeelyB.A., LL.B. Legally Speaking 359 considered a licensee’s successful claim for commission when his principals argued that he breached the standard of care and fiduciary duty owed to them by failing to act upon and disclose information that might have benefited them. The judge decided that the licensee owed no duty to call other agents

Commission – Licensees Sign the Effective Cause of Sale #314

Legally Speaking

By Gerry NeelyB.A., LL.B A Port Alberni agent successfully collected a commission because of his prominently displayed sign on his principal’s property. It, and the dog run that could be seen from the road, resulted in drive-by buyers turning in and speaking to the owner’s son. When the owner advised the agent of this interest, the

Assignment of Commission to Listing Agent #311

Legally Speaking

By Gerry NeelyB.A., LL.B. A licensee with a deposit that is less than the commissions has always run the risk of either losing the remainder of the commission, or being forced to sue for it, because an unhappy seller instructs his lawyer or notary public (the conveyancer) to pay all of the proceeds of sale to

Chattels or Fixtures New Test Applied #260

Legally Speaking

By Gerry NeelyB.A., LL.B. Column #247 referred to a case in which the judge laid down six rules for deciding whether or not an article is a chattel or a fixture. Since that case, another judge who said that the rules were of material assistance, has applied them to decide which of the following items are fixtures

Commission Upon the Sale of "An Insolvent Property" #232

Legally Speaking

By Gerry NeelyB.A., LL.B. The case referred to in Column #231, which discussed the loss of a commission payable by an insolvent owner of property valued at less than the total amount of mortgages and liens registered against it, raised comments as to how licensees can protect themselves. The judge stated that licensees either needed the

Commission Clause #231

Legally Speaking

By Gerry NeelyB.A., LL.B. Another commission case in which the licensee’s success illustrates again the importance of the wording of the commission clause. A foreclosing mortgagee obtained an Order allowing it to appoint a receiver. The latter then gave a nonexclusive agency to a licensee to whom commission would be payable, “should you procure for

Commission Lost by Licensee Who Introduced Purchaser #221

Legally Speaking

By Gerry NeelyB.A., LL.B. As the real estate industry in British Columbia moves toward the adoption of buyers’ agency as an alternative to sub-agency, it is interesting to read decisions in which the licensee’s claim for commission would have had a different result if the licensee had been acting for the buyer. In an Alberta

Resale Before Closing #203

Legally Speaking

By Gerry NeelyB.A., LL.B. The question of when an agent’s duty to his principal ends is still uncertain. The answer to the question becomes critical when the property is resold before the sale is to close, and the same agent is involved in both sales. In an Ontario case, an owner of unlisted property accepted

Conduct of Sales Proceedings #182

Legally Speaking

By Gerry NeelyB.A., LL.B. An exclusive conduct of sale given in court ordered proceedings for the sale of property is normally limited to a stated period of time and usually gives the person with conduct of sale the right to list the property with an agent. If a court ordered sale order authorizes payment of

Commissions #181

Legally Speaking

By Gerry NeelyB.A., LL.B. The following cases illustrate the often expressed statement that in considering an agent’s claim for commission, no general rule can be laid down and each case must be decided on the terms of the contract in question and the facts. In a Saskatchewan case an agent without a listing introduced to

Commission and One Year Holdover Period #172

Legally Speaking

By Gerry NeelyB.A., LL.B. One word in a listing contract meant the difference between failure and success for a licensee claiming commission based upon an offer made during a one year holdover period, which contained a condition removed after the expiration of the holdover period. The case is useful because it illustrates the often quoted remarks

Commission Earned During a One-Year Overholding Period #165

Legally Speaking

By Gerry NeelyB.A., LL.B. An Ontario listing agreement which expired on October 15th, 1984, had a one-year overholding clause. This entitled the agent to a commission if within that year, the property was sold, exchanged, leased or optioned to anyone who, during the listing period, was made aware through the marketing activities of the agent that

Commissions #113

Legally Speaking

By Gerry Neely B.A. LL.B There are occasions when a licencee agrees reluctantly to pay part of a purchaser’s costs out of the licencee’s commission, to make a deal between a cash-short purchaser and the vendor. Since this helps the vendor, the licencee might well think that the licencee’s decision to help the purchaser is