Real estate broker sues seller after losing commission

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

Harold Shilberg signed a sales contract to sell his apartment building to licensed real estate broker Thomas A. Horning for $715,000. The agreement, prepared by Horning, said Shilberg agreed to pay Horning, a broker representing himself, a commission as "compensation for services" of 3 percent of the sales price. Shilberg was advised in writing Horning is a licensed broker acting as a principal. Purchase Bob Bruss reports online. The sales agreement gave Horning 21 days after acceptance by Shilberg to provide the seller with a mortgage prequalification letter. Horning failed to provide such mortgage evidence. Shilberg cancelled the sale. Broker Horning then sued the seller for specific performance of the sales contract, or in the alternative, for damages for Shilberg's alleged contract breach. While this lawsuit was pending, Shilberg sold the property to another buyer for $920,000. Horning then demanded the $21,450 sales commission Shilberg agreed to pay him in the contract, plus ...