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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Real Estate Law
Satisfied Customers: 117370
Experience:  Licensed attorney practicing landlord-tenant, land use and other real estate law and litigation.
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Question: How can I get paid on listings I sourced.Background:

Customer Question

Question: How can I get paid on listings I sourced.
Background: I worked on a real estate team in CA and was a 1099 employee. I am not licensed so I was considered an Inside Sales Associate. The way I would get paid was by sourcing leads and having our teams listing agent go take the listing. I would get paid a certain commission on all the listings I sourced.
I ended up moving from California to Texas and wrote an agreement with a list of about 30 properties that I would get a 25% commission when they closed. Signed by both lead members of the team.
Now the team is saying they cant pay me because I am not licensed.
What should I do?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
Under California law a broker can share a commission with a party to the transaction, provided that person is not doing any work that would require a license. See: Williams v Kinsey (1946) 74 Cal.App.2d 583, 592-593. RESPA allows a broker to pay an unlicensed person for work actually performed out of their commissions. See: 12 USC 2607(b). So you have to actually have performed work for the broker and the payment is for that work performed to receive a split of their commission.
So, if you actually performed work for those leads for which you are entitled payment and they agreed to pay for that work, then they are now in breach of contract for not paying you and your recourse would be that you would need an attorney in CA to file suit against them for breach of contract to pay you for the work you performed.