[WSBARP] lawyers receiving commissions

[Bryce Dille]

If the atty involved charged a fee for services and not a commission for putting a deal together it could be paid at closing and not run  afoul of the statute.

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Randall Cornwall
Sent: Monday, June 19, 2017 2:53 PM
To: WSBA Real Property Listserv
Subject: Re: [WSBARP] lawyers receiving commissions

Please respond to the list.

On a semi-related note - I recently had a Managing Broker tell me that his real estate firm could not refund a buyer the fully agreed upon commission rebate out of the SOC because the buyer's lender said they would not allow the full amount of the rebate to be paid in closing.  He also cited this statute saying the firm could not pay the buyer the remainder of the commission rebate outside of closing because the buyer was not a licensed broker.

Thoughts?

___________________________
Randall J. COrnwall
DEMCO LAW FIRM, P.S.
(206) 203-6000

On Mon, Jun 19, 2017 at 12:41 PM, Roger Hawkes <Roger at law-hawks.com<mailto:Roger at law-hawks.com>> wrote:
To your knowledge are there any judicial rulings or WACS establishing a lawyer’s right to get a selling broker’s commission without a real estate broker’s license?  A managing broker is quoting this statute as the reason why escrow can’t pay a ‘procuring cause’ lawyer the ‘selling broker’s’ commission as listed on the purchase and sale agreement.

RCW 18.85.301
Sharing commissions.
(1) Except under subsection (4) of this section, it is unlawful for any licensed firm, broker, or managing broker to pay any part of the licensee's commission or other compensation to any person who performs real estate brokerage services and who is not a licensed firm, real estate broker, or managing broker in any state of the United States or its possessions or any foreign jurisdiction with a real estate regulatory program.
(2) Except under subsection (4) of this section, it is unlawful for any licensed real estate firm to pay any part of the firm's commission from brokerage services or other compensation to a real estate broker or managing broker not licensed to do business for the firm.
(3) Except under subsection (4) of this section, it is unlawful for licensed brokers or managing brokers to pay any part of their commission from brokerage services or other compensation to any person, whether licensed or not, except through the firm's designated broker.
(4) A commission may be shared with a manufactured housing retailer, licensed under chapter 46.70<http://app.leg.wa.gov/RCW/default.aspx?cite=46.70> RCW, on the sale of personal property manufactured housing sold in conjunction with the sale or lease of land.


Roger Hawkes, WSBA 5173
19909 Ballinger Way NE
Shoreline, WA 98155
www.hawkeslawfirm.com<http://www.hawkeslawfirm.com/>
206 367 5000<tel:(206)%20367-5000> voice
206 367 4005<tel:(206)%20367-4005>  fax


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