Forgive me Longhorn fans, but this title is too fitting to ignore:

Yes, dear readers, this reference is oh so appropriate, and the lyrics tell a cautionary tale. I recently represented an Illinois brokerage firm which listed and sold a commercial property in Illinois. The buyer was a firm based in Texas, and the purchase and sale agreement (PSA) named both my client as the agent of the seller and a Texas broker representing the buyer. The PSA also confirmed that each party would pay its own broker’s commissions. This left my Illinois client under the impression that it would receive a “full” commission, with the buyer’s named broker seeking its compensation elsewhere, meaning from the buyer.

Imagine my client’s surprise when a draft closing statement appeared with the Texas buyer’s broker claiming half of my client’s fee! I was called in to examine the facts and secure my client’s fee. Yes, I drafted and recorded a broker lien (of course) and began searching the licenses of the named buyer’s broker (no Texas license) and of each of the principals of the buyer (none had Texas licenses). This led me to conclude that the buyer was trying to get into my client’s pocket for a portion of our fee, but had no legal standing to do so. Naming another broker with an Illinois license didn’t solve this issue , because this named Texas “brokerage firm” had no license at all!

This led me back to the buyer’s firm’s website, where I could not help but notice that the firm owned properties in multiple states (about 10 or so), and the website suggested that this unlicensed buyer might have sought a fee on each of these acquisitions. My call to the buyer’s attorney was actually fun. I started with “Please help me understand…” which is code for “What the heck!” I asked how the buyer could claim a fee from any party, much less from the seller or my client, when there were no licensees at all, much less, any Illinois license, and no broker cooperation agreement with my client. While I made no threats, I mentioned that my client’s chief operating officer was considering filing a complaint for unlicensed practice against the buyer and its principals in Illinois, and perhaps in each of the other 10 states where this firm had acquired property.

You can do this, friends, because there is a feature on every real estate commission’s website called “Licensee Lookup” which allows the public, including other brokers, to confirm the existence or the lack of license for any party searched. To cut to the chase, the buyer backed down, withdrew its request for a portion of our fee, and closed the deal. However, I did note that the buyer firm charged a “service fee” to the actual buyer entity in the exact amount of the fee it had sought from us.

Licensee Lookup allows your clients, your co-brokers, your adversaries, and anyone with access to a computer or telephone, the ability to inquire and confirm whether your license is current, expired, non-existent, sponsored by the wrong firm, and likely whether you have ever had a license law complaint which resulted in published discipline. Put this tool in the hands of a seller who wants to reduce or (perish forbid) refuse to pay your fee — arm this ne’er-do-well with the knowledge that your license has lapsed — and you are looking at some significant headwinds and defenses to your commission claim, and perhaps a license law complaint. If I were your designated managing broker, I would periodically check the firm’s licensee lookup just to make sure all licenses were current: that the licenses (and the firm’s license) have been timely renewed; and that all deadlines for mandatory continuing education have been completed, and finally that all my sponsored licensees timely completed their courses.

Perhaps my cautionary tale and the beneficial result for my client (fighting off a bogus and unjustified commission claim from a parachuting non-broker without litigation) will motivate you to keep your licensing current and in good standing. Remember, “The Eyes of Texas are upon you…”