Wednesday, January 30, 2013

Remax Homes v. Leist case brief

Re/Max Homes and Estates, Inc. v. Leist308 A.D.2d 439 (2003)
764 N.Y.S.2d 107

FACTS
-P, a real estate broker, procured proposed purchasers for the seller's house.
-Sellers sold the home to another party, P brought this action against sellers and the listing broker.  P sought a real estate broker's commission, based on the allegation that P procured a "ready, willing, and able purchaser."

PROCEDURAL HISTORY
-Listing broker moved to dismiss complaint on ground that it failed to state a cause of action.
-Lower court granted motion to dismiss, finding that sellers had not executed proposed contract of sale with the proposed purchasers that P procured.
 
ANALYSIS
-This court disagrees with lower court's conclusion that the lack of a fully executed sale contract is fatal to the P's cause of action to recover a broker's commission.
-Here, the P alleged that it procured purchasers who were ready, willing, and able to buy the sellers' house on the seller's terms. 
-However, the court does agree that the case should be dismissed: the P had no cause of action because it had NO CONTRACT, express or implied, with the sellers.   
-The sellers' sole contract was with the listing broker.  
-Claim for compensation does not lie against the sellers.

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