Log in

View Full Version : In lieu of a contract not being signed, is a verbal agreement binding?


binky185
Dec 18, 2011, 10:13 AM
Our Real Estate Franchise requires Agents to sign an independent Cotractor Agreement in accordance with CRA. Sometimes these are not signed and Agents decide to leave and we have no recourse but to sue in Small Claims Court

JudyKayTee
Dec 18, 2011, 10:24 AM
Yes, verbal agreements are binding.

Have you been successful in Small Claims Court?

Where? What Country or State?

AK lawyer
Dec 18, 2011, 10:30 AM
Our Real Estate Franchise requires Agents to sign an independent Cotractor Agreement in accordance with CRA. Sometimes these are not signed and Agents decide to leave and we have no recourse but to sue in Small Claims Court

What JudyKayTee said.

What's CRA?

And what exact relief are you suing the agents for?

binky185
Dec 18, 2011, 11:46 AM
CRA is Canad Revenue Agency We would be suing for unpaid fees in accordance with what the Agent had signed for on registration/ or asked to be on certain plan. i.e. Gross Commission Plans at 50/60 0r 70% or pay a desk fee in addition to an Association Fee (which Pya as y ou go is responsible for and they get 95% of commission )
We are seeking relief of the unpaid Association Fees/ or Desk Fees and the Monthly Royalty an Advt Fund fess which all Agents are aware of when they join a Re/Max Franchise
At present we have not yet tested the Courts in a Hearing. We've tried in a Settlement Hearing, to no avail
We are in Toronto Canada, in the City of Vaughan,a neighboring City, Governeed by Province of Ontario Laws and Federal laws of Canada

AK lawyer
Dec 18, 2011, 01:04 PM
So these are fees payable by the agent to you, the franchisee, and not some sort of tax payable to the CRA? I see no reason why you should not be able to recover them in small claims court.

Fr_Chuck
Dec 18, 2011, 01:41 PM
My issue is why you are allowing them to work without signing the paper work, It sounds like a serious management issue is there is more than one or two happening. No paper work, no agent agreement, no ability to work.