July 27, 2016
One year ago a client for a brokerage firm commenced negotiations with a buyer of a substantial piece of New York City real estate days prior to the expiration of an exclusive brokerage agreement. Subsequently, a memorandum of contract was filed recording a “memorandum of contract” showing that the contract was executed by the purchaser three days prior to the expiration of the exclusive agreement.
For reasons unrelated to the brokerage agreement, there was an almost one year delay in the culmination of the closing. Notwithstanding that the sale had not closed, Itkowitz PLLC brought a complaint against the seller claiming an “anticipatory breach of contract.”
The defendant seller then brought a motion to dismiss on the ground that no closing had been taken place, which motion was denied by the Court. The court then ordered discovery to proceed and directed that the Seller notify broker’s counsel seven days in advance of any projected closing date.
When the Defendant’s counsel notified Itkowitz PLLC that the sale was about to close, depositions were cancelled and the case settled days before the closing.
Labels: Brokers/Broker's Fees