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Real Estate and Business Disputes

What to Do When a Real Estate Commission Is Not Paid

A step-by-step guide for Florida brokers and brokerages after a closing, or a lost closing, leaves a commission unpaid.

Josef Timlichman
By Josef Timlichman

·6 min read

An unpaid commission usually surfaces in one of a few ways. The closing happens and the settlement statement simply leaves your brokerage off. The seller instructs the title company not to pay, claiming the listing expired or the agreement was terminated. The buyer's side refuses to honor a cooperating compensation offer. Or the deal falls apart, the seller signs with a new buyer a month later, and no one calls you. In commercial transactions the amounts can be large enough that the owner has every incentive to fight.

The first days after you learn of the problem matter. Money at a closing table moves quickly, and once net proceeds are disbursed to the seller, collecting becomes harder. The steps below are meant to protect your position while there is still something to protect.

1. Confirm the facts of the closing

Find out whether the sale has closed and, if so, when. Check the county's official records for a recorded deed and the sale price. If the closing has not yet happened, try to identify the closing agent or title company. Write down who told you what and when, including any statement from the seller or the other broker about why you will not be paid.

2. Read your agreement for the exact payment trigger

Pull the signed listing or buyer brokerage agreement and read the compensation clause closely. Note when the commission is earned (at contract, at closing, or on some other event), any protection period after expiration, how termination works, and whether there is an attorney's fee clause or a dispute resolution clause. Match each fact from step 1 against those terms. The agreement, not the general practice in the market, will decide most of these disputes.

3. Send a measured written demand

Have your broker send a short written demand to the party responsible for paying. State the agreement, the transaction, the amount due and a reasonable date for payment. Keep it factual. Avoid threats, insults and copies to people who do not need to see it. A calm demand letter often becomes an exhibit later, and it should read well to a judge or jury.

4. If the property is commercial, act on the lien statute quickly

Florida gives brokers a lien on the owner's net proceeds from the sale of commercial real estate, but only if strict notice steps are followed. The lien "attaches to the owner's net proceeds only, and does not attach to any interest in real property" (§ 475.703). The statute excludes property "Improved with one single-family residential unit or one multifamily structure containing one to four residential units" and units that can be sold separately, such as condominiums and townhouses (§ 475.701(5)). The commission notice must be in writing and sworn by the broker before a notary, and it must be delivered to the owner and, if known, the closing agent within 30 days after the commission is earned and "at least 1 day before the closing" (§ 475.705(1), (3)). A broker who misses that window "may not enforce a lien for the commission under this part," subject to a narrow exception for a sale made without the broker's knowledge (§ 475.705(4)). If your deal may qualify, call a lawyer the same day.

“attaches to the owner's net proceeds only, and does not attach to any interest in real property”

§ 475.703

5. Preserve the payment trail

Save the settlement statement if you have it, disbursement instructions, emails with the title company, and any commission disbursement authorization you signed or sent. If the title company is holding funds because of a dispute, keep its written explanation. These documents show where the money went and who directed it.

6. Keep your licensing and broker records in order

Confirm that your license and your broker's license were active during the listing, the showings and the contract. Locate your agreement with your brokerage. If you are a sales associate, your claim generally runs through your broker, so get your broker involved early.

The Florida rules that matter

A commission contract is enforceable only if the licensing requirements were met at the time. Under § 475.41, "No contract for a commission or compensation for any act or service enumerated in s. 475.01(3) is valid unless" the broker or sales associate held a properly issued and renewed license when the act or service was performed. Under § 475.42(1)(d), a sales associate may not "commence or maintain any action for a commission or compensation" against anyone except the broker registered as the associate's employer at the time.

Attorney's fees can change the economics of a small or mid-size commission claim. If the agreement lets one party recover fees for enforcing it, § 57.105(7) generally lets the court award fees to the other party if that party prevails instead. Florida's offer of judgment statute can also shift fees: a defendant whose offer is rejected may recover fees if the judgment is "at least 25 percent less than such offer," and a plaintiff whose demand is rejected may recover fees with a judgment "at least 25 percent greater than the offer" (§ 768.79(1)). Both sides should take settlement offers seriously.

Limitation periods are five years for an action on a written contract (§ 95.11(2)(b)) and four years for a contract "not founded on a written instrument" (§ 95.11(3)(j)). The commercial lien steps above run on a much shorter clock.

In 2026 we obtained a $47.83 million jury verdict in a broker commission case. This was a jury verdict; post-trial proceedings may affect the final judgment. Past results do not guarantee a similar outcome. Read our case study.

“No contract for a commission or compensation for any act or service enumerated in s. 475.01(3) is valid unless”

§ 475.41

“at least 25 percent less than such offer,”

§ 57.105(7)

“not founded on a written instrument”

§ 95.11(2)(b)

Your checklist

  1. Confirm whether and when the sale closed, and identify the closing agent.
  2. Read the agreement's earning, protection period, termination and fee clauses.
  3. Have your broker send a short, factual written demand.
  4. For commercial property, evaluate a sworn commission notice immediately.
  5. Save the settlement statement, disbursement instructions and title company emails.
  6. Confirm licensing for you and your broker on every relevant date.
  7. Calendar the contract limitation period and talk with a lawyer early.

How we handle these cases

We look at the agreement, the closing record and the timeline together, then decide what can still be done before money leaves the table. Sometimes a well-supported demand resolves the matter. When it does not, we bring the claim that fits the facts and prepare it for trial from the start. We represent brokers and brokerages throughout Florida. Meetings are by appointment only. Call 305-748-3789 to schedule a time to talk.

This article is general information, not legal advice for your situation. Reading it does not create an attorney-client relationship. Past results do not guarantee a similar outcome.

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