Legal Question in Business Law in Maryland

If a real estate broker enters into an Exclusive Agency Agreement to lease property with an Owner that authorizes broker to offer space of a "vanilla shell" (which it is), can the owner advertise the same property under more favorable terms (e, g, advertising that the space is a fully equipped restaurant when it is not) without notifying broker of a change in terms in order to avoid paying a commission, if a tenant responding to such ad, ends up leasing it under terms different than those advertised. Advertising in this manner seems to be fraudelent and a bait and switch as their intent was to solicit leads and then negotiate a lease whereby the tenant would have to pay landlord to equipment. I found the ad myself, when I contacted property manager he acted like he did not about ad when in fact his name and phone number were the contact. Then, the owner and property manager refused to disclose the new terms or entertain an offer submitted to me while I was still the Listing Agent. Can the broker sue for damages under breach of contract if the owner failed to notify me regarding its change of strategy and provide me with the opportunity to terminate the listiing so that I was not misrepresenting the terms of the lease to a tenant since Broker was "deceiving" me with respect to the terms he would accept. This just happened to me and I am planning to file a small claims case. Can I seek punitive damages as the actions of the parties were designed to deceive me ad I had approximately 20 conversation with the principal while they were advertising the space and in fact the owner met with me an a prospective client when I requested drawings of the space from the client, I still was not advised of their willingness to equip the restaurant. This exposed me to claims of misrepresentation if I had presented owner with offer under better terms and the tenant later found out. I am in Maryland. Oh, by the way the principal is an attorney.


Asked on 9/02/10, 2:25 pm

1 Answer from Attorneys
Phillip M. Cook Cook Legal Services, LLC

You should strongly consider hiring a Maryland litigator to represent you. The answer to you question is "it depends on the terms of the listing agreement."

Best of luck. *******The above is for informational purposes only and does not create an attorney-client privilege.*******

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Answered on 9/07/10, 2:36 pm


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