*Please note: Any questions regarding Legal Hotline Spotlights should be submitted via the Virginia REALTORS^® Legal Hotline. Our attorneys are unable to respond to questions through our comments section.

Q: “We have a listing that will close in the next two weeks. I discovered that my agent who had the listing had committed several Code of Ethics violations and terminated her. I believe that her actions cost the sellers a significant amount of money and stress. Do I have to pay her the commission when the sale closes?”

A: This answer is going to depend on the language in your independent contractor agreement (“ICA”). If the ICA allows you to hold back the commission in certain circumstances, then you might be able to do so. If the ICA is silent on that, then it’s likely that you would need to pay the commission. However, we strongly suggest that you have an attorney review the ICA if you want to withhold the commission to ensure that you are following the agreement completely and accurately. 

Have a question about this article? Submit it to the Legal Hotline!

The Legal Hotline is a member benefit that has been supporting members for over 25 years. Our team of lawyers answers your important questions about real estate transactions quickly and accurately (usually within three business hours!).

Here are some tips to help make the Legal Hotline work for you!