BrokerageIndustry News

Company seeks ruling on real estate pay advances

Kansas Supreme Court will hear issue Sept. 7

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The Kansas Supreme Court has agreed to consider a case brought by a company that advances payment to real estate agents based on anticipated sales commissions. The company, Commission Express of Kansas City, appealed to the state Supreme Court after a district court in October 2005 ruled that the company's real estate commission agreements are invalid under state code and violate state limitations on garnishments. The parent Commission Express company, which has 71 franchise offices in 40 states, has advanced about $290 million in commissions to real estate agents, according to a company announcement. The company and its franchises have participated in similar litigation in other states over brokerage companies' distribution of real estate commissions. In June 2005 Inman News reported that Commission Express lost a legal battle against NRT Inc. and Coldwell Banker New Jersey. John Effrein, president of Commission Express of Kansas City, said today that there is a lack of case law tha...