Can Realtor/Broker sue their Seller client for Non-performance/Breach of Contract? In California.?
Question by Spencer H: Can Realtor/Broker sue their Seller client for Non-performance/Breach of Contract? In California.?
Seller listed home for sale with Broker. Broker procures an offer via a cooperating Broker who represents Buyer exclusively.
After several counteroffers, Seller accepts Buyer’s offer for purchase. It is discovered during the first week of escrow that Sellers have Notice of Default filed against their property and that they have not paid the monthly payment for 6 months (breach of paragraph #7 of Residential Listing Agreement for not disclosing that loan was in deficiency).
While in escrow, Seller refuses to complete required termite repairs. Thus delaying close of escrow, everything else is on schedule. Sellers non-performance of a contractual obligation causes Buyer to cancel escrow.
1) Can Broker sue for Entire commission Amount?
2) Can Realtor sue for actual damages for time/moneys spent marketing property?
3) Can Buyer sue for actual damages for lost money for inspections/appraisal/etc?
Best answer:
Answer by Wahoo
Is the seller still under the original listing agreement with the broker or has that lapsed or been terminated? Seems to me that the ability of the broker / realtor to be able to sue would hinge on whether or not they’re still performing under the RLA and therefore still have the opportunity to profit from the sale of the property. If the agreement is still valid then the broker/realtor shouldn’t be able to sue because the listing agreement is not affected buy the buyer in question’s decision not to purchase the property.
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