As a real estate agent in Wyoming, your commission is your livelihood. But what happens when a deal closes and your hard-earned commission is suddenly in question? Or when another agent claims they were the “procuring cause” of a sale? Commission and representation disputes are more common than you might think—especially in Wyoming, where real estate laws differ from other states. Understanding your legal rights and responsibilities can help you avoid costly conflicts and ensure you get paid for your work.
Common Commission & Representation Disputes in Wyoming
Wyoming’s real estate market presents unique challenges for agents, particularly when it comes to commission disputes. Here are the most frequent issues agents face:
1. Procuring Cause Disputes
Wyoming’s vast rural areas and small-town markets create situations where buyers interact with multiple agents before closing a deal. When two agents claim they were the reason a sale happened, a procuring cause dispute arises.
Example: A buyer tours a property with Agent A but later purchases it with Agent B. Who gets the commission? If Agent A can prove they initiated the transaction and played a significant role, they may have a legal claim.
How to Protect Yourself: Keep a record of all communications, showing appointments, and buyer interactions to establish your role in the transaction.
2. FSBO Transactions & Verbal Commission Agreements
Wyoming has a strong market for For Sale By Owner (FSBO) transactions, but these deals often lead to commission disputes when sellers refuse to honor verbal agreements.
Example: You bring a buyer to an FSBO listing, and the seller verbally agrees to pay you a commission. After closing, they refuse to pay, claiming there was no formal agreement.
How to Protect Yourself: Get a written commission agreement signed by the seller before showing the property. Wyoming courts rarely enforce verbal agreements in real estate disputes, and if they do, the disputes tend to be knock-down, drag-out fights.
3. Intermediary Agency & Undisclosed Representation Issues
Wyoming allows an agent to act as an “intermediary”, meaning an agent can facilitate the transaction with both the buyer and the seller. However, this must be fully disclosed and agreed upon in writing. If an agent fails to properly disclose their agency status, disputes can arise and the agent may risk losing a proportion of their earned commission.
Example: A seller claims they were unaware you were removing yourself from representing them and becoming an intermediary agent. They may claim to only owe you the listing agent portion of commission instead of a commission for both sides of the transaction. This also may lead to a complaint with the Wyoming Real Estate Commission (WREC).
How to Protect Yourself: Always provide clear written disclosure of your agency role and any commission changes when acting as an intermediary agent.
How to Avoid Commission Disputes in Wyoming
✔ Use Written Agreements – Whether it’s a buyer representation agreement, a listing contract, or a commission agreement, having everything in writing protects you.
✔ Document Your Work – Keep records of emails, text messages, property showings, and negotiations to prove your involvement.
✔ Use clear language for commission changes – If acting as an intermediary, ensure you use clear language in the written agreement with the seller that reflects any change in commission or your right to earn both the seller and buyer’s agent commissions.
✔ Know Wyoming’s Real Estate Laws – The Wyoming Real Estate Commission (WREC) enforces strict rules on agency disclosure and commission agreements. Understanding these regulations helps you stay compliant.
✔ Consult a Real Estate Attorney When Needed – If you’re facing a commission dispute, getting legal advice early can help you recover what you’re owed.
Facing a Commission or Representation Dispute? Let’s Talk.
If you’re dealing with a commission issue or representation dispute, we can help. Don’t let legal conflicts cost you your hard-earned commission.
This is not legal advice, instead this information is provided for educational purposes. If you have questions concerning legal matters, whether general or specific to an issue, seek legal advice from a licensed real estate attorney.