Broker fights for commission on expired listing

Law of the Land

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Real estate broker Newman signed a contract with Grommet to list for sale Grommet's property known as the Gray Rocks Ranch ("the ranch"), which was located near land owned by the Wyoming National Guard. Newman had represented Grommet on around 21 real estate transactions over a number of years, including Grommet's original purchase of the ranch.Newman agreed to list the ranch for sale for $4.9 million at an 8 percent commission. After pulling it off the market for a while, Grommet re-listed the ranch for sale at $7.3 million, then revised the listing agreement with Newman under an exclusive listing agreement that set the list price for the ranch at $7.7 million at a 6 percent commission. Under the agreement, Newman would receive a $75,000 bonus if he sold the ranch for full price. Newman invested "considerable" money advertising the property for sale, and showed it to multiple prospects. The Wyoming National Guard expressed an interest in purchasing the...