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I'd like to sue my broker for damages due to breach of contract. A salesperson in my brokerage took a listing. I found a buyer & we opened escrow. Turns out, the seller wasn't the true owner but the brother of the owner on title, who is deceased. I'd let it go but the listing agent did obtain a property profile, which if he had read it, made it clear he had an invalid listing. Even worse, the listing contract passed broker file review (before I submitted the offer) and 4 people missed it, including the broker. My buyer offered to give more time for probate to clear, but instead we were handed a cancellation form. Broker won't demand commission from seller's brother as several properties/potential listings are at stake. I say this is professional negligence and my broker should pay me. Any thoughts?
No, you don't get paid for something that doesn't close. That is just one of the pitfalls about this business and you knew that going in. I don't think you have a case here. There was a cloud on the title that never got cleared up and the deal fell apart. Property profiles are not always right and things like this happen. You were also part of this transaction, why is the responsibility to catch it only on their side? If you stay in this business it won't be the last one of these you ever see. Forget about it and move on.
OP how many transactions have you done? The reason I ask because if this scenario is causing you to feel the need to sue someone, you really are in the wrong profession.
OP how many transactions have you done? The reason I ask because if this scenario is causing you to feel the need to sue someone, you really are in the wrong profession.
Very true. You can always find fault with someone every time a deal doesn't close. It usually isn't grounds for a lawsuit.
I'm unclear as to who "handed" you the cancellation form. Was it the brother? One way or another, he obviously wants to liquidate the property once the property goes thru probate. You have a buyer who is willing to wait. I guess I'd do everything I could to stress the "bird in the hand" theory...everyone take a deep breath, go thru the process, everyone wins if they are patient.
You have no case, asking to throw good money away and destroy your relationship with your broker. Things happen and it's no fun when you don't get paid.
As Silverfall mentioned, if this upsets you this much you need a corporate job with a weekly paycheck. I have a deal I've been working on for 2 years that's falling apart. You know how much I'll make off that deal ?
The listing agent (brokerage) instigated the cancellation. This is my 9th yr in r.e. and yes, normally we don't get paid until closing. However, because the brokerage failed to live up to their responsibilities again, I feel they should be held accountable. They have an office policy to always check property profiles, due to this same thing happening in the past. I should also mention that when I saw the name on the contract I asked the listing agent specifically if title was clear and he told me all was fine. That office is very sloppy with their paperwork. Unfortunately the buyers will not purchase the property when probate clears up, as they will not work with the brokerage again, so we cannot just sit back and wait. Needless to say, on the advice of an attorney who had nothing good to say about the brokerage, I moved elsewhere, with full disclosure to the new broker who was happy to have me.
If there is no relationship currently between the brother and the former listing agent/broker, why can't you contact the brother directly with an offer to handle both sides for him, perhaps for a reduced rate, when the property is available?
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Yeah...
