If a seller refuses to pay an earned commission to a broker, the broker may:
Correct Answer
B) file a formal complaint with the Department of Real Estate (DRE).
Filing a court action against the seller is the legally appropriate remedy because a listing agreement is an enforceable contract, and a seller's refusal to pay an earned commission constitutes breach of that contract. Under California law, a broker who has a valid written listing agreement (required by the Statute of Frauds under California Civil Code Section 1624) and has performed by procuring a ready, willing, and able buyer has standing to sue for the commission as damages. This is the standard, well-established legal remedy for commission disputes in California.
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