Collecting Buyer Commission in Default
February 24, 2026
When a Buyer Is in Default | Buyer Agreement in Place
If a buyer defaults under their Buyer Agreement, you may still have options to recover your earned commission.
We are moving towards a busy Spring Market. And that means you will be showing many homes to lots of buyers. So, what happens when the buyer buys outside of your agreement? Here’s some tips to keep in mind when you are faced with this situation :
First, under the Platinum Realty Buyer Agreement, if the agreement includes a cancellation fee, that fee must be paid before the buyer has the right to terminate the agreement.
Second, please remember that for any property you introduced to the buyer during the term of the agreement, you are contractually entitled to compensation, even if the buyer later purchases the home outside of your representation.
Lastly, while you are owed this compensation, our brokerage will not pursue the commission on your behalf. Instead, you will be responsible for taking the necessary steps to collect these funds.
This may include sending a demand letter (which we can provide to you upon request) or seeking relief through the courts. It is important that you initiate this process under Platinum Realty because agents cannot collect funds directly—any commission recovered must be paid to the brokerage first and then disbursed to you according to our policies.
First, under the Platinum Realty Buyer Agreement, if the agreement includes a cancellation fee, that fee must be paid before the buyer has the right to terminate the agreement.
Second, please remember that for any property you introduced to the buyer during the term of the agreement, you are contractually entitled to compensation, even if the buyer later purchases the home outside of your representation.
Lastly, while you are owed this compensation, our brokerage will not pursue the commission on your behalf. Instead, you will be responsible for taking the necessary steps to collect these funds.
This may include sending a demand letter (which we can provide to you upon request) or seeking relief through the courts. It is important that you initiate this process under Platinum Realty because agents cannot collect funds directly—any commission recovered must be paid to the brokerage first and then disbursed to you according to our policies.
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Your Available Options:
1) Send a Demand Letter
What it is: A formal written request asking the buyer to pay the commission owed under the Buyer Agreement.
Why start here:
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Low cost
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Often resolves the issue quickly
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Creates a paper trail
Tip: We can provide you with a Demand Letter template to get started.
2) Seek Legal Counsel
What it is: Engaging an attorney to send a stronger, more formal demand on your behalf.
Why consider this:
2) Seek Legal Counsel
What it is: Engaging an attorney to send a stronger, more formal demand on your behalf.
Why consider this:
-
Adds legal weight and credibility
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May increase buyer compliance
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Helps assess the strength of your claim
Best for: Higher commission amounts or resistant buyers.
3) File in Small Claims Court
What it is: Pursuing the unpaid commission through your local small claims court.
Important to know:
3) File in Small Claims Court
What it is: Pursuing the unpaid commission through your local small claims court.
Important to know:
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Courts have maximum award limits
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Limits vary by state
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You must be comfortable with the court’s cap
Best for: Clear agreements and commission amounts within your state’s limit.
Key Reminder
Always review your Buyer Agreement and consult legal counsel when needed to determine the best path forward.
Key Reminder
Always review your Buyer Agreement and consult legal counsel when needed to determine the best path forward.
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