There is a difference between a commission that is late and a commission that is being withheld. A late commission is a timing problem that resolves. A withheld commission is a payor who has met the trigger and still will not pay. This guide is about the second case: what to do, in what order, when a landlord refuses to pay an earned leasing commission. It is a general roadmap, not legal advice, and the right path depends on your agreement and your jurisdiction, so treat an attorney as part of the plan, not a last resort.
Important: this is general information only. Collection rights, liens, deadlines, and procedures vary significantly by state and by the terms of your agreement. Consult a qualified attorney before acting on any step below.
Before you escalate, make sure you are on solid ground. Confirm the trigger in your commission agreement has been met, that the amount is what you believe, and that there is no genuine contingency or condition still outstanding. If the issue is really that the trigger has not been met yet, that is a timing matter covered in the guide on why your commission is delayed, not a refusal. Escalating a commission that is not yet due undermines your position when it becomes due.
Move through these in order. Most disputes resolve early, and a documented, professional approach often works without ever reaching a courtroom.
Gather the commission agreement, proof the trigger was met, any correspondence, and a clear record of the amount and the date it became due. A clean file does two things: it strengthens any later action, and it often resolves the matter on its own, because a well-documented claim is harder to ignore. Do this first, regardless of where things go from here.
Start with a direct written request referencing the agreement, the trigger date, and the amount owed. Keep it factual and professional. Many payors who are stalling, disorganized, or testing whether you will follow up will pay once they see a clear, documented request that signals you are serious.
If a follow-up does not work, a formal demand letter is the next step, often more effective when it comes from or is reviewed by an attorney. A demand letter states the amount owed, the basis for it, and a deadline, and signals that you are prepared to escalate. This is frequently the point at which a withheld commission gets paid, because it raises the cost of continuing to refuse.
Some jurisdictions provide brokers a statutory right to file a lien for unpaid commissions, sometimes called a broker's lien or, in certain contexts, a mechanic's lien. Availability, scope, and deadlines vary widely by state, and the rules are strict. This is squarely a step to take with an attorney, both to confirm the right exists in your jurisdiction and to file correctly within any deadline.
If the amount is within the small claims limit in your jurisdiction, that venue can be a faster, lower-cost path to a judgment. For larger amounts, a civil action may be warranted. Which makes sense depends on the sum, the cost and time of pursuing it, and the likelihood of actually collecting. An attorney can help you weigh whether the recovery justifies the effort.
The honest answer is usually earlier than brokers think. Even if you handle the first follow-up yourself, involving an attorney before the demand letter, and certainly before any lien or filing, protects your rights and your deadlines. Many commission disputes turn on contract interpretation and timing rules that are easy to get wrong alone.
To be clear, a commission advance is not a way to collect a disputed or refused commission. An advance is for a clean, undisputed commission that is simply not due yet. But it is worth understanding the distinction: if your commission is merely waiting on an occupancy date, you do not need any of the steps above, you have a timing situation, and an advance can convert that earned commission to cash now. The escalation path here is for genuine refusal, where the trigger is met and the payor will not pay. The guide on commission advances explains where an advance fits, which is the timing case, not the dispute case.
Document the claim, send a professional follow-up, then a formal demand letter, and if needed pursue a lien where state law allows or a small claims or civil action. Involve an attorney early, since rights and deadlines vary by jurisdiction. This is general information, not legal advice.
In some states, yes, through a broker's lien or similar statute, but availability, scope, and deadlines vary significantly and the rules are strict. Confirm with an attorney whether the right exists where your deal is and how to file correctly.
No. A delayed commission is waiting on a trigger like occupancy and is on schedule. A withheld commission has met the trigger and is being refused. The steps here are for the second case; for the first, see the guide on why your commission is delayed.
This guide is general information for commercial real estate brokers and is not legal advice. Collection rights, lien availability, deadlines, and procedures vary by state and by your agreement. Consult a qualified attorney before taking action.
