Court Decides If Broker Was Procuring Cause of Transaction
Dalbir Singh purchased real property located in Babylon after signing a sales agreement for the property prepared and executed by R. Matthew Shane, a real estate broker employed by All Island Estates Realty Corp., a real estate brokerage firm. The sales agreement provided that the commission due to ERC was $50,000 “from buyer.” After Singh failed to pay the commission, ERC sued Singh. After a nonjury trial, Supreme Court rendered a verdict in favor of the ERC and a judgment was entered against Singh in the total sum of $50,910.21. Singh appealed.
To prevail on a cause of action to recover a commission, the broker must establish (1) that it is duly licensed, (2) that it had a contract, express or implied, with the party to be charged with paying the commission, and (3) that it was the procuring cause of the sale. Where the broker is not involved in the negotiations leading up to the completion of the deal, the broker must establish that it created an amicable atmosphere in which negotiations proceeded or that it generated a chain of circumstances that proximately led to the sale.
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