Legal Question in Real Estate Law in California

Hello, my partner listed an apartment building using California Association of Realtor forms (CAR). The agreement was fully executed by both Seller's on title. After marketing the property diligently for 2+ months, my partner presented 2 full price offers. One offer with inspection contingencies removed, and all due diligence signed, however Seller called and said "I don't want to sell anymore."

1. Based on my reading of the contract, we are entitled to a full commission. Is this correct?

2. If so, would it be the entire fee (here 5%) or only half if my partner was only going to represent the Seller and the Buyer was represented by an outside agent.

Any other advice is appreciated. I am supposed to report to my partner the answer and which attorney to use to move forward with a lawsuit

Asked on 3/11/14, 8:39 pm

2 Answers from Attorneys

Mitchell Sussman Mitchell Reed Sussman & Associates

This is an easy one. Your partner IS entitled to commission as the Seller's agent.

Feel free to visit me in the Beverly Hills office for a free consult and to review the paper work.

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Answered on 3/11/14, 8:45 pm
Anthony Roach Law Office of Anthony A. Roach

I disagree with Mr. Sussman. Your partner is not entitled to a commission unless certain factors are met. He must have a valid broker's license in good standing, a listing agreement in writing, and all of the terms of listing met. Most listing agreements base compensation not only on finding a willing and able buyer, but consummating the sale. You don't get a commission in that situation if the seller has changed his mind and taken the apartment building off the market.

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Answered on 3/12/14, 9:23 am

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