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Refusal to Pay Brokerage

I work for a frum real estate brokerage, selling houses. I have a client (buyer) who has been looking for a home. I brought her to several houses and she became very interested in one house. She brought back her husband and they put in a bid for the house. She then returned to the house a third time with me and with her mother, sister and a contractor. After hearing that the renovations she had in mind would be too costly, she asked to see other homes. I then brought her to yet another house and she really loved it and asked me to return again and show it to her husband.

When I brought her back to the house that evening, her husband saw the people who owned the house, he realized that he knew them. After looking at the house, he agreed that he liked it very much and wanted to buy it. I asked them if they wanted to put in a bid on the house and they said they would discuss it and call me the next day. The following evening, about 24 hours later, the woman called to tell me that since they already knew the people and would likely have come to that house without me, they are not halachically responsible to pay my commission. They offered me a “finder’s fee” of $5000 for my efforts, rather than the $30,000 commission I should have earned.

Aside from me taking a loss, I would be cutting out the brokerage I work for, who would be getting a cut as well. However, if I don’t take her deal, she threatened to do the deal without me and not give me anything at all. These are all allegedly “frum” people and I was shocked at them putting me in this position.

What should I do?

Thank you.

Answer:

The family has to pay you the full brokerage fee, and the claim that they would have found the house in any case is not a valid claim for exemption.

You are moreover obligated to the brokerage company you work for, and therefore you can’t accept the offer they are making (unless your brokerage company approves it).

I would therefore inform the family that you are not prepared to accept the offer, and that if they wish not to pay, you will take it up with them in Beis Din.

Good luck and best wishes.

Sources:

Please see here for an article of shadchanus, most of which applies to brokerage. The claim that the family will have known about the sale regardless of the broker is speculative, and cannot exempt from payment.

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