Minnesota State Real Estate Practice Test

What recourse does a salesperson have if they don’t receive their commission from a broker?

1. Report to the real estate board

2. File a collection suit in civil court

3. Seek mediation from the Commissioner

4. Wait for the broker to pay voluntarily

The correct answer is: File a collection suit in civil court

A salesperson has the option to file a collection suit in civil court if they do not receive their commission from a broker. This legal recourse allows the salesperson to formally seek the payment they are owed, often through a lawsuit, which can compel the broker to fulfill their financial obligations. By pursuing this path, the salesperson is exercising their right to take the matter into a legal setting where evidence can be presented, and a judgement can be made in favor of either party. While reporting to the real estate board or seeking mediation may seem like potential avenues, they may not lead to an immediate or enforceable resolution regarding commission payment. Such approaches are generally more geared toward regulatory issues or conflict resolution rather than direct enforcement of financial claims. Additionally, waiting for the broker to pay voluntarily places the salesperson in a passive position, which does not guarantee receipt of the commission in a timely manner, if at all. Therefore, taking proactive legal action through a civil suit is typically the most effective course of action for collecting unpaid commissions.