Q: Does a broker have to - by law - submit a commission statement or similar invoice in order to receive their commission?
Or is sending a confirmation that the wire / check came through after the closing is enough?
This is pertaining to selling a note (debt) and mortgage upon a commercial property in NYC
A:
I am not aware of any law requiring a commission statement, however just about every closing I have handled, literally hundreds, the broker has almost always created a memorandum of sale at the outset which delineates the parties, price, and terms of the deal and then prior to closing the broker or broker's send an invoice to notify the buyer / seller's attorney how much is owed and how to make the check out. Considering the small amount of time and effort it takes to put together an invoice / commission statement I recommend that it always be done.
More information here:
https://www.dos.ny.gov/licensing/lawbooks/RE-Law.pdf
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