Legal Question in Real Estate Law in California
A broker required that I sign a standard Non-Circumvent/Non-Disclosure agreement (NCNDA) before he would show me one of his "pocket listings." I signed as a principal, and he provided me information on a commercial property in California. (This broker did not have a listing on the property. Apparently, no one did at that time.) Subsequently, the lender foreclosed and took the property back as REO, then listed it with a different broker who publicly announced his exclusive listing and offered to provide the complete deal package to anyone who will sign his NDA. The original NCNDA has not expired. Under these circumstances, am I still bound by non-circumvention provision of the original NCNDA? That is, can I approach the listing broker (and seller) directly, or does the original NCNDA still require that I do so only through the broker who first introduced me to the property? (And does the answer depend on whether, going forward, I act as principal or buyer's broker?)
2 Answers from Attorneys
One would have to read the various agreements you discuss in your posting before actually providing any sort of answer or advice. What the respective parties' rights are depends upon the language in the agreements. I would suggest meeting with an experienced real estate attorney before taking any action.
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Yeah, sometimes these exclusive listing agreements have "tail" coverage that ties in prospects who were located during the listing for some time afterward. Tread cautiously to avoid the possibility of double liability, or having to defend a claim. One possibility is to approach the broker holding your NCNDA and ask whether he has any remaining claim to a commission from you, and if so, why, and when it expires. Make him show you the writing and get a copy of it, if you don't already have one. Finally, ask for a short confirming note in writing.
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