Chincoteague, VA asked in Employment Law for Virginia

Q: I have been terminated by Long & Foster and am the procuring cause for an upcoming commission they wont pay unless I

sign with another Agency. They terminated me Aug. 14, my license is now inacative.

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1 Lawyer Answer
James H. Wilson Jr.
James H. Wilson Jr.
  • Glen Allen, VA
  • Licensed in Virginia

A: Licensed real estate salespersons are typically independent contractors who act as agents on behalf of a licensed real estate broker. A broker may be entitled to a commission when it is the procuring cause of a sale of real estate. Commissions from the sale of real estate are paid to licensed brokers. Real estate real estate salespersons have contracts with their broker specifying their right to receive money from the broker from a sale. This amount is typically calculated as a percentage of the commission from a sale that a real estate agent worked on, either by procuring the listing for the brokerage, or by getting purchaser to sign up with the brokerage as a buyer's agent. The contract between the broker and the salesperson governs the rights to compensation from the broker. Brokers and salespersons must be licensed in Virginia while performing their duties through settlement of the sale.

Terminated independent sales representatives may still be entitled to a commission under Virginia Code Section 59.1-457. Payment of sales commission.

"A. Every sales representative shall be paid the earned commission and all other compensation earned or payable in accordance with the terms of the contract.

B. When a contract between a principal and a sales representative is terminated, for any reason, except by mutual agreement, all earned commissions shall be paid within a period specified in the contract, but in no event shall such period exceed thirty days from the date of termination or, in the case of orders processed subsequent to termination, thirty days from shipment. Such commission and other compensation shall be paid to the sales representative at the usual place of payment unless the sales representative requests that the commission be sent to him through regular mail. If the commission is sent through regular mail, it is deemed to have been paid for purposes of this subsection on the date that it is postmarked."

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