What legal action can a sales associate take if he is not paid a commission he believes he earned?

The sales associate's best course of action when seeking a commission he believes he has earned is to file a suit against ABC Realty in court. This is because the sales associate is typically considered an agent of the brokerage, and the brokerage is responsible for paying the commission according to the agreement made with the sales associate.

The relationship between the sales associate and the brokerage is governed by a contract, which outlines the terms for commission payment. If ABC Realty is withholding the commission unjustifiably, the sales associate has the right to pursue legal action against the brokerage to enforce the terms of their agreement and seek payment. This legal action would typically take the form of a breach of contract claim.

In contrast, filing suit against the seller would not be appropriate unless there was a specific contractual obligation directly between the seller and the sales associate, which is rare. Similarly, seeking payment from the Real Estate Recovery Fund is not applicable in this situation, as that fund is designed for instances of fraud or mismanagement by real estate licensees, rather than commission disputes. Contacting the property owner directly might lead to confusion or complications and does not establish the legal basis needed to recover a commission.

Thus, pursuing action against the brokerage is the most legally sound and relevant approach