Chap6Briefs - Performance of Listing Agreement: Majority...

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Performance of Listing Agreement: Majority Approach Blackman DeStefano Real Estate v. Smith Facts: Smith entered into an agreement with a real estate agent where they agreed that if the agent secured a purchaser of the home Smith would pay a 5% commission of the $100,000. The agent found a purchaser, the Lennons. The Lennons eventually backed out claiming an illness that would not allow the wife from moving out of her home. The real estate agent said he didn't want the commission because he empathized with the situation, however, the company sued for the commission. Issues: Did the real estate's agent agreement to forgo the commission release the Smith's from liability? Are the Lennons liable for the commission because they backed out of the purchase? Analysis: The real estate agent did not have authority to release a claim of commission of her corporate principal. The Lennons are a defaulting purchaser and are not compelled to indemnify the seller for payment of a realtor's commission in the absence of an express agreement. Perfomance of Listing Agreeement: Minority Approach Ellsworth Dobbs, Inc. v. Johnson Facts: Dobbs, a real estate broker, found a party to buy Johnson's property. The party he found agreed to purchase the property but did not close the deal because of his inability to obtain financial backing. Issues: Do the Johnsons owe Dobbs the agreed upon commission? Analysis: The brokers duty to the owner is to produce a prospective buyer who is financially able to pay the purchase price and take title, and the owner has a right to assume such capacity when the broker presents the purchaser. In a practical world, the true test of a willing buyer is demonstrated at the time of closing of title and if he unjustifiably refuses or is unable financially to perform, then the broker has not produced a willing buyer. Conclusion: The court held that the owners were not liable for the commission and remanded the case for a new trial to determine whether the buyer was liable to the broker on the basis of an implied promise to complete the transaction. Offer and Acceptance; Listing Cancellation Rellinger v. Bremmeyr Facts: The Bremmeyr's owned property that was listed by McFall and also through a multiple listing service that Rellinger worked for. They received an offer from Fanning, who saw the listing on the service, to buy the property then they gave a counter offer and
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This note was uploaded on 01/19/2012 for the course BLS 443 taught by Professor Humbauch during the Fall '11 term at Miami University.

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Chap6Briefs - Performance of Listing Agreement: Majority...

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