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Q: “We have a listing that will close in the next two weeks. I discovered that my agent who had the listing had committed several Code of Ethics violations and terminated her. I believe that her actions cost the sellers a significant amount of money and stress. Do I have to pay her the commission when the sale closes?”
A: This answer is going to depend on the language in your independent contractor agreement (“ICA”). If the ICA allows you to hold back the commission in certain circumstances, then you might be able to do so. If the ICA is silent on that, then it’s likely that you would need to pay the commission. However, we strongly suggest that you have an attorney review the ICA if you want to withhold the commission to ensure that you are following the agreement completely and accurately.
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