What must a broker prove to file court action to collect an unpaid fee?

To file a court action to collect an unpaid fee, a broker must demonstrate that they were licensed at the time the fee was earned. This is crucial because real estate laws require brokers to maintain an active license in order to legally earn and claim any commissions or fees associated with real estate transactions. Without an active license during the time the fee was earned, the broker may not have legal standing to pursue payment through the court system.

While having a written contract with the buyer or verbally disclosing the fee may be relevant in establishing the terms of the agreement, these factors are secondary to the broker’s licensing status. Compliance with local zoning laws is not typically relevant to the collection of fees and is more related to property usage and development rather than the broker's ability to collect commissions. Hence, being licensed at the time the fee was earned is the essential requirement for a broker to take legal action for an unpaid fee.