Real Estate Law | Fee may be due if contract falls through
Dear Mr. Feichthaler:
We contracted to sell our house in Cape Coral, as we believed my husband received a fantastic job opportunity in Ohio. We learned this week that the company he was supposed to work for has ceased all hiring, and that his offer has been revoked. Now, we are keeping our jobs here and not selling our home. Thankfully, the buyer agreed to allow us to cancel the contract, and we have returned the buyer’s escrow deposit.
However, our Realtor is now demanding the full 6% of the sales price as commission, even though we never made it to the closing table. Can he do this?
Shelly R.
Dear Frank,
I am sorry to hear about the sudden and unexpected termination of the job offer. It sounds like your Realtor is not being reasonable, but sometimes the law and fairness do not align. You likely signed a listing agreement with the broker, which provides the various circumstances when commission is due. In Florida, the agreement will generally provide that, if a contract is in place and then the seller causes the transaction to terminate, the broker is still entitled to full commission. When you advised your Realtor about the situation, I would have expected he or she would have discussed the listing agreement with you, and discuss a fair resolution. Nevertheless, the commission is likely payable under these facts under the standard listing agreement.
Now that the property has not sold, you may not have ready cash to make any kind of payment. I would recommend, first, that you seek legal counsel to see if there are any other potential defenses to their claims for commission. If there are no defenses, you or your attorney can negotiate with the broker to what both sides may consider fair given their efforts. Real estate brokers do not want to be involved in lawsuits, just as their clients wish to avoid court as well. I wish you and your husband the best on this situation and on your husband’s future employment.
Eric P. Feichthaler has lived in Cape Coral for over 37 years and graduated from Mariner High School in Cape Coral. After completing law school at Georgetown University in Washington, D.C., he returned to Cape Coral to practice law and raise a family. He served as mayor of Cape Coral from 2005-2008, and continues his service to the community through the Cape Coral Caring Center, and Cape Coral Kiwanis where he serves as president. He has been married to his wife, Mary, for 24 years, and they have four children. He earned his board certification in Real Estate Law from the Florida Bar, and primarily practices in real estate law and wills and trusts. He is AV Preeminent rated by Martindale-Hubbell for professional ethics and legal ability, and is a Supreme Court Certified Circuit Civil Mediator. He can be reached at eric@capecoralattorney.com, or 239-542-4733.
This article is general in nature and not intended as legal advice to anyone. Individuals should seek legal counsel before acting on any matter of legal rights and obligations.
To reach ERIC P. FEICHTHALER, please email news@breezenewspapers.com