Industry News

Florida court protects broker commissions

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

In a dispute over a nearly $150,000 commission, the Florida Supreme Court has held that it is not contrary to Florida public policy for the government to pay a contingent fee for services. The ruling makes the Florida real estate market safe for brokers to continue working on a commission basis with government entities selling or leasing property. The court also held that even though a buyer was already aware of a property when two brokers approached the buyer about a potential purchase, because the brokers introduced the buyer and seller and negotiated the sale, the brokers were indeed the procuring cause of the later sale. The dispute In Rotemi Realty Inc. v. Act Realty Co. Inc. arose when a broker, Maria Martin-Hidalgo, met with the Miami-Dade County School District to offer its real estate director a property for purchase. Eventually, the director decided the district wanted to purchase two other tracts of land, one of which was owned by Act Realty. Martin-Hidalgo teamed with ...