Realtor Dad dies

[mykidsmom]

What is the name of your state? California

Somehow I posted this in the wrong spot so am reposting here. Sorry Hope this is a more appropriate place for this post. Thanks
MKM

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My kids's Dad (who is a Realtor/Broker) died last week with open escrows. The realtor handling these escrows in his absence says that the Dad's escrows or "whatever" need to be probated for them to recieve Dad's portion of the commission. Is this true and how do they go about doing that if it is true?

Dad does not own personal real estate (don't ask, it's a long story) so the realtor who gave us this info says a probate would be simple. Somehow I find that hard to believe.

Thanks for any help/advice/direction given.

MyKidsMomWhat is the name of your state? California

 

[Dandy Don]

You need to be consulting with a probate attorney in person to see if he/she could handle this for you, or maybe even asking your attorney to consult with a real estate attorney.

Do you have any idea of how much the commissions are worth? Since they are an asset in your father's estate (monies due to him), probate is needed but it will probably fall into the scope of being a smaller estate, and your county courthouse may have special procedures for handling/expediting a smaller estate.

DANDY DON IN OKLAHOMA (tiekh@yahoo.com)

 

[nextwife]

Dad does not own personal real estate (don't ask, it's a long story) so the realtor who gave us this info says a probate would be simple. Somehow I find that hard to believe.

It is VERY possible for a realtor to not own their own real estate. One reason is that many cannot show a reliable flow of income on paper, and may have difficulty qualifying for a mortgage, especially with the newer "credit scoring" system of underwriting. MOST of my customers are real estate professionals. and, surprisingly, there are MANY non-developers who own NO real estate, beyond their own home.

As stated, probate will be needed. His real estate firm will have the right to deduct any of his unpaid advertising, MLS, transaction fees, and other marketing fees from any commissions due, based upon the terms of his operating agreement with his brokerage. His estate will also need to pay any unpaid medical or other debts the estate owes.

Frankly, I don't understand them needing probate for the FIRM to be paid the commission. Normally, the agent works for the brokerage, and the commission is due to the brokerage, and the brokerage pays their agent in accordance with their brokerage agreement with them. So the brokerage is due their commission, and they would THEN pay the agent's estate the agent's commission portion. When I close a real estate transaction, the commission check is always paid to the firm, who then pays their agents, NOT directly to the agent themself.

 

[mykidsmom]

Thanks

Thanks Don and Nextwife,

The information is helpful as we are wading through the quagmire. We are still trying to locate the will although that won't affect the commission issue.

Thanks for all your help.

MKM