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Broker commission litigation

Straw Broker Schemes: When Your Commission Is Diverted

A straw broker scheme happens when a buyer or seller puts a friend, relative, or cooperative agent on the contract as broker of record so the commission you earned flows back to them. Florida law may allow you to pursue the people behind it.

Call (305) 748-3789

Warning signs of a straw broker

Sudden "no longer interested"

Your client walks away, then an offer on the same property appears hours or days later through someone else.

Related-party agent

The new broker of record is a spouse, sibling, business partner, or employee of the buyer.

New or unformed LLC

The purchaser is an entity created after you introduced the buyer, sometimes not yet legally formed at signing.

Same price you negotiated

The deal closes at terms that match pricing information you obtained and shared.

Representative result

In May 2026, a Miami-Dade jury returned a $47.83 million verdict ($19.83M compensatory, $28M punitive) in Miles Goldstein Real Estate, LLC v. Reuben Ezekiel, et al., a case handled by Josef Timlichman involving an $84,000 commission. Past results do not guarantee, warrant, or predict a similar outcome in any future case.

Read about the verdict

Frequently asked questions

What is a straw broker?

A straw broker is a licensee named on a transaction mainly to receive a commission that is then shared with, or returned to, a party to the deal. The broker who actually found the buyer and negotiated the terms is left out.

What legal claims can apply to a straw broker scheme?

Depending on the facts, claims may include breach of contract, procuring cause, fraud in the inducement, tortious interference with a business relationship, unjust enrichment, and civil conspiracy against everyone who participated.

Can I sue the buyer if I didn't have a written agreement with them?

Possibly. Some claims, such as fraud and tortious interference, do not depend on a written buyer agreement. Your timeline, communications, and the relationship between the parties matter. An attorney can review whether your facts support a claim.

How quickly should I act?

Florida statutes of limitations apply, and evidence like text messages and showing records can be lost. Preserve everything and seek a case review promptly.

Call (305) 748-3789