Real Estate Agents – Disgorgement Of Commissions Allowable Under CA Law Where There is Bad Faith

A real estate agent who breaches the duty of good faith is precluded from recovering a commission for services rendered upon a showing that the breach was founded in fraud or intentional deceit. See Ziswasser v. Cole & Cowan, Inc., (1985) 164 Cal. App. 3d 417, 432 (Holding that a breach of fiduciary duty involving intentional disloyalty or bad faith required before a broker will be deprived of his/her right to a commission.)

Thus, a real estate broker’s commission could be disgorged in the event a principal shows intent and/or bad faith on the part of the agent.

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