Legal Question in Real Estate Law in California

Technically, the seller enters into a listing agreement with a broker, who employs agents. If you entered into a listing agreement with what I call a "rogue" agent who is not supervised by a licensed real estate broker, then you have a different problem. Otherwise, you may be speaking to an agent of a broker.

With that said, the listing agreement typically sets the amount of compensation. The general compensation is 6%. That amount is not set by law, but rather by custom. I 've caught many an agent/ broker telling sellers that 6% is the legal amount. It's not.

The amount of a commission is negotiable. The parties are free to agree to any amount or manner of compensation and may condition the broker's entitlement to compensation on any lawful basis. (John B. Kilroy Co. v. Douglas Furn. of Calif., Inc. (1993) 21 Cal.App.4th 26, 35.)

A broker's right to coompensation arises, if at all, from the employement agreement with the seller. If the agreement does not specifically provide for the amount of compensation, the broker will be deemed entitled to a "reasonable" commission.

Commissions payable to brokers are fully negotiable before an agreement between the broker and the client. Afterwards, in an unusual situation, a broker may be willing to renegotiate, but often will not, especially when they have done everything expected of them under the contract.

The other buyer/seller party in the sale has nothing to do with commissions. They are between the seller and his broker, per written listing agreement.