Industry News

Court rules in favor of brokerage in payment-advance dispute

Brokerage not bound by earnings agreement with agents

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The Kansas Supreme Court has ruled that a real estate brokerage company is not obligated to compensate an advance payment company for money that two of the brokerage's agents received as an advance for anticipated commission income. The two agents "assigned their earnings in violation" of state code, according to the Kansas Supreme Court ruling, and Commission Express, the company that offered advance payment to the agents, "cannot enforce the assignment against Reece & Nichols, the brokerage company affiliated with the agents. State code provides that a creditor in Kansas "may not take an assignment of earnings of the consumer for payment or as security for payment of a debt arising out of a consumer credit transaction. An assignment of earnings in violation of this section is unenforceable by the assignee of the earnings and revocable by the consumer." Vicky Ashby, an agent with Reece & Nichols, received one cash advance from Commission Express of Kansas City, according to ...