If a seller refuses to pay an earned commission to a broker, the broker may:
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file a vendor’s lien against the seller’s property.
A vendor's lien is a security interest retained by a seller who extends credit to a buyer for the purchase price — it is not a tool available to brokers seeking unpaid commissions. Brokers have no statutory right to place a lien on a seller's property simply because a commission is owed, and attempting to do so could constitute an improper cloud on title.
file a formal complaint with the Department of Real Estate (DRE).
file a court action against the seller to recover their fee.
This option is incorrect because "file a court action against the seller to recover their fee." does not match the rule tested by the question. The correct answer is "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.
invalidate the sale and have it set aside.
A broker has absolutely no legal authority to invalidate or set aside a completed real estate sale. Once escrow closes and title transfers, the transaction is complete; the broker's dispute over commission is a separate contractual matter that does not affect the validity of the underlying sale between buyer and seller.
Why is this correct?
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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