Broker loses commission battle with seller

Law of the Land
Published on Jun 23, 2010

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by CareyBot

Deer Run Properties LLC (Deer Run) listed a number of condominiums for sale with a real estate broker in September 2005. The listing agreement gave the listing broker the exclusive agency to sell the property for 12 months at a 10 percent commission. The broker listed the property on the local multiple listing service (MLS), offering a 5 percent commission as compensation to cooperating brokers/MLS members who cooperated by being the procuring cause of a sale.

Several months later, some prospective buyers contracted with Deer Run directly to purchase several of the condo units. Keys to the Lake Lodgings Co. (Keys), the buyers' broker, recorded a broker's lien notice against the units and notified Deer Run of the lien. Deer Run sued to remove the lien notice, a