If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

There is a  nightmare scenario for the agents at AllPro Realty Group in Utah. The real estate brokerage, one of the largest in the state, has announced it is shutting down it’s remaining offices. That is bad enough news in itself.

But reports are coming out that agents are having to fight and sue the AllPro to get their commissions on closed deals. As independent contractors agents do not the have the ability to ask labor commissioners to get back pay. Instead they have to file suit to get their money if there is a commission dispute.

Can you imagine getting a home closed in this market and then your broker not paying you your commission? This has got to be absolutely petrifying for the agents when money is already tight. To make matters worse, the brokerage obviously is having severe money problems if they are shutting down.

Hopefully for the agents sake AllPro is putting all commission dollars into escrow accounts so that if the company does go insolvent the agent’s commissions will be protected.

In addition, several more real estate agents including former AllPro agent Thomas Johnson are considering filing a class action suit against the company to recover their unpaid commissions. Johnson, who says he is owed $27,500 in unpaid commissions, is skeptical of the company’s claims that the economic downturn caused its collapse.

“If it’s really the economy, then more agents from other real estate companies will be coming out to say the same thing,” he said. “The economic downturn did affect business. But this is more a mismanagement of funds. The company knew they were going under, but continued to take commissions for the deals, and didn’t return calls from agents.”  via Daily Herald

Related posts:

1. New Jersey Loses One Third of Real Estate Agents In 2008
2. Some Interesting Real Estate Employment Statistics