BrokerageIndustry News

Atlanta broker, GMAC Real Estate split

Metro Brokers sued for alleged unpaid fees

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GMAC Real Estate LLC and one of its largest franchisees, Metro Brokers Inc., are parting ways, with GMAC claiming in a lawsuit that it's owed nearly $350,000 in unpaid fees and other losses on a 10-year franchise agreement that wasn't due to expire until 2014.Atlanta-based Metro Brokers, which boasts 2,100 agents at 26 offices, maintains that the company terminated its franchise agreement on Oct. 1 because of doubts about the direction in which GMAC Real Estate's parent company, Brookfield Residential Property Services, is taking the franchise.Less than two weeks later, GMAC Real Estate filed suit in federal court to establish its right to enter into franchise agreements with other brokers in Metro Brokers' territory, stop the brokerage from using the GMAC Real Estate service mark and trademarks, and recover the money it says it's owed.Metro Brokers, which plans to announce its affiliation with another real estate franchise network in December, doesn't dispute that it hasn't paid franc...