What can a cooperating broker do if there is not enough money to pay his or her commission because the seller is short of funds?

If a cooperating broker’s commission is short at a closing, the cooperating broker may file an arbitration claim against the listing company.  The listing company has a duty to make reasonable attempts to collect the commission from the seller.  In the case of a short sale, foreclosure sale, or bankruptcy, it may be impossible to collect from the seller.  If the listing agent has made reasonable efforts, this can be used as a defense to an arbitration request, according to the National Association of REALTORS®  Code of Ethics and Arbitration Manual.

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