Legal Question in Real Estate Law in California
Commision lost
I am buyer's broker. If seller modified the contract and buyer refused to buy under new conditions. Can buyer's broker sue the seller for the commission loss? Is it considered damages. Should broker filed a claim under tort or contract?
5 Answers from Attorneys
Re: Commision lost
How much was lost? It would require artful drafting as the breach of contract was with the buyer so the duty is owed to the buyer not to you. Under tort law as well the plaintiff is to whom the duty is owed. Contact me directly.
Re: Commision lost
Typically, a buyer's broker gets paid via the listing broker. The listing is an offer to pay a fee to any broker who delivers a buyer. If you delivered a buyer who was ready to pay the asking price, you may have a claim against the listing broker.
Your facts may vary from the typical situation. For example, if you had a written contract with the buyer, that changes the analysis entirely.
Re: Commision lost
I agree with the previous answers. Brokers earn their commissions by fulfilling the terms of their contracts with their principals, and that is usually independent of whether the sale closes or not. Under the most likely contract scenario, you have not earned a commission.
Re: Commision lost
The seller can not modify a mutually agreed to contract. It sounds as though the buyer made an offer that was not exactly what the seller was demanding, and the seller in response to the offer modified his terms somewhat but they were still different from what the buyer had offered. So all that you had were discussions on what the price/terms would be and not a binding contract. In which case the seller's broker is not entitled to a commission as he did not find a buyer willing to agree to the terms the seller initially demanded; if the seller owes no commission to his agent, how would one be owed to you, when, as already pointed out, the seller's agent is the one offering to split his commission with anyone who comes up with a buyer meeting the terms of the sales demand.
Re: Commision lost
I agree with all my colleagues.
It would be very difficult to show contract liability here, and even more difficult as to tort.
You need a meeting of the minds for an enforceable contract. I cannot see such a meeting in the facts as you present them.