Buying and sellingDetached House For Sale Condo For Sale andLand For Sale are mostly coordinated by real estate agents, from finding buyers or sellers, scheduling property viewings, negotiating terms, to helping push the transaction to completion
However, in practice, there are cases where buyers and sellers contact each other to make contracts themselves after being introduced by the agent, in order to avoid paying commission fees, commonly known as “cutting the agent out”
Such situations cause many real estate agents to wonder whether, if they introduced the buyer or seller for a house, condo, or land and played a key role in enabling both parties to agree on the transaction, but were excluded from the final step, do they still have the right to claim commission fees, and what actions should be taken to protect their rights
This article 9Asset will help understand the legal effects of being cut out by buyers and sellers, whether agents still have the right to receive commission fees, as well as prevention approaches and ways to handle the situation, so that agents can properly protect their rights and reduce risks in their real estate profession
Queue jumping is a common problem encountered by real estate agents when buyers and sellers contact or transact directly with each other, often with the intention of avoiding paying commissions. Understanding what behaviors constitute queue jumping helps agents, buyers, and sellers understand their rights and duties, while reducing potential disputes that may arise later.
Characteristics of queue jumping refer to situations where buyers or sellers avoid transacting through an agent, even though the agent introduced or created the opportunity for both parties to meet and start negotiations, with the goal of buying and selling directly or avoiding paying commissions. This can occur in various forms, such as
Buyers and sellers contact each other directly after the agent introduced them
Returning to trade later without going through the original agent
Agreeing to buy and sell directly to avoid paying commissions
Concealing the transaction or not informing the agent when the sale is completed
Changing the name of the buyer or seller, or using another person to enter into the contract to avoid paying commissions
Intentionally postponing the transaction until the agent's contract expires, then returning to transact directly
Queue jumping means that buyers or sellers intentionally avoid proceeding through the agent, even though the agent introduced or played a key role in enabling both parties to meet and start negotiations, with the intent to avoid paying commissions or circumvent contract terms. Examples of actions that may constitute queue jumping include
Closing the sale without informing the agent even though the agent brought the buyer to view the property or coordinated in the initial stage
Changing the name of the buyer or seller or using another person to enter into the contract to avoid paying the agreed commission
Postponing the transaction until the agent's contract expires then returning to transact directly to avoid commission obligations
Contacting and negotiating directly after the agent introduced both parties, excluding the agent from the entire transaction process
Being bypassed by a buyer or seller does not always mean that the broker loses the right to receive a commission. It must be considered based on the law, the conditions in the brokerage contract, and the facts of each case. If the sale occurs as a result of the broker's work, even if the parties later agree among themselves, the broker may still have the right to claim a commission. However, if it cannot be proven that the sale resulted from the broker's duties, the broker may not have the right to receive a commission.
In principle, a brokerage contract is an agreement that appoints the broker as an intermediary to find contracting parties. When the broker can introduce a buyer or seller who meets the conditions, and the sale occurs as a result of such work, it may be considered that the broker has fulfilled the duties according to the contract.
The broker may still have the right to claim a commission if they are the one who found the contracting parties, the sale occurred from the broker's introduction or coordination, and there is evidence confirming the work, such as chat messages, emails, appointment documents, or the brokerage contract.
If there is no agreement regarding the commission, the broker did not contribute to the sale, or cannot provide evidence that the sale resulted from their work, they may have no right to claim a commission under the law or related agreements.
Read interesting articles If the Buyer and Seller Cancel the Contract Themselves, Does the Agent Really Lose the Right to a Commission?
When a buyer or seller jumps the queue, the broker should not hastily conclude that they have lost the right to receive a commission. Instead, they should proceed systematically, starting by gathering evidence, reviewing the contract terms, and attempting to negotiate a mutual resolution. If an agreement cannot be reached, then consider exercising legal rights. Proper initial actions will help increase the chances of protecting the broker's rights and reduce potential disputes.
The first thing to do is to collect evidence showing that the broker contributed to the transaction, such as chat messages, emails, sales proposals, property viewing registration forms, and broker appointment letters. These documents can be used to confirm the broker's role if a dispute arises.
Before taking legal action, the broker's rights under the contract and law should be communicated, and both parties should be given the opportunity to negotiate a resolution, as many cases can be settled without litigation.
Consider details in the contract, such as contract duration, commission rate, and breach conditions, to assess the extent of the broker's claim rights.
If negotiations fail, the broker may send a demand letter before exercising the right to sue for commission. This should be done within the statute of limitations prescribed by law, and all evidence should be prepared to support the claim.
Although queue jumping cannot be completely prevented, the risk can be reduced if the agent establishes a strict working system from the start of the assignment, whether it is drafting contracts, keeping evidence, or clearly communicating conditions with the contracting parties. This not only helps prevent disputes but also helps preserve the right to claim commissions if problems arise in the future.
A brokerage contract should be made in writing, specifying rights, duties, contract duration, and commission conditions clearly to serve as evidence in case of disputes.
Buyers or interested parties should register before viewing the property to confirm that the viewing was referred by the agent and can be used as reference evidence later.
Keep chat messages, emails, appointment details, and negotiation records systematically to demonstrate the agent's role in coordinating and sourcing contracting parties.
Set commission rates, payment conditions, and consequences of breach clearly in the contract to reduce ambiguity and prevent disputes.
Explain the role, duties, and service conditions to buyers and sellers from the beginning to create mutual understanding and reduce the chance of queue jumping during the transaction.
Being skipped in the queue often causes misunderstandings about the rights of brokers. Many believe that when the buyer and seller agree to trade directly, the broker immediately loses the right to receive a commission, or if there is no written contract, they cannot claim their rights. These understandings may not always be correct because the consideration of the broker's rights depends on the law, the agreement between the parties, and the facts of each case.
Not always true. If the transaction occurs from the broker's introduction or operation, even if the buyer and seller later agree by themselves, the broker may still have the right to receive a commission if the conditions under the contract are met and the broker can prove their involvement.
Not necessarily. Although having a written contract makes it easier to prove rights, if there is other evidence showing the agreement and the broker's operation, such as chat messages, emails, or witnesses, these can be used to support the claim.
It depends on the facts of each case, such as the duration under the broker's contract, the continuity of negotiations, and whether the transaction results from the broker's introduction. If it can be proven that the transaction is a result of the broker's operation, the broker may still have the right to claim a commission even after some time has passed.
Being skipped in the queue is a common problem faced by real estate agents, but it does not automatically mean that the agent loses the right to receive a commission. The consideration of claims depends on the facts of each case, the evidence that can be presented, and the conditions specified in the agency contract. If the agent can prove that the transaction occurred due to their introduction or operation, they may still have the right to receive a commission according to the law or the agreement between the parties.
Therefore, the best way to prevent problems is to make a written agency contract, clearly specify the commission terms, and keep systematic records of contacts, negotiations, and related documents. This not only helps reduce disputes but also enables the agent to effectively exercise their rights if a buyer or seller skips the queue in the future.
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In some cases, being skipped in the queue does not automatically disqualify the broker from receiving a commission if it can be proven that the transaction occurred due to the broker's introduction or operation and is in accordance with the conditions specified in the brokerage contract. The broker may still have the right to claim a commission.
It may be possible if other evidence confirming the hiring and duties of the agent can be presented, such as chat messages, emails, negotiation records, or witnesses. However, having a written contract will help prove rights and reduce disputes more effectively.
Mutual contact is not automatically considered illegal, but if there is an intention to avoid paying commission while the broker is the one who procured the contracting party, and such actions violate the agreement in the contract, the broker may have the right to claim commission or damages according to the law.
Evidence should be kept at every step of the operation, such as the broker appointment letter, broker contract, sales proposal letter, chat messages, emails, appointment records, property visit registration forms, and various negotiation evidence to confirm that the transaction occurred through the broker's operations.
It depends on the terms of the contract and the facts of each case. If the contract includes conditions protecting subsequent transactions or it can be proven that the transaction is a direct result of the broker's introduction, there may still be a right to receive a commission, even if the contract period has expired.
A written contract should be made, clearly specifying details such as the scope of the broker's duties, contract duration, commission rates and payment terms, including cases where the buyer or seller contacts each other directly after being introduced by the broker. Clearly defining these conditions will help reduce disputes and better protect the rights of all parties.
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