In Miami, real estate is a big business and can lead to significant financial transactions. A reason that many people get into the business is to receive substantial commissions when there is a purchase of property. However, when there is an agreement is in place and one side or the other does not adhere to it, getting that payment can be difficult, particularly if the amount reaches the high six-figures or seven-figures. When there is a dispute over these bills that cannot be settled amicably and paid, it may be necessary to consider pursuing commercial real estate litigation.
A recent report noted that a real estate brokerage firm and a realtor are in dispute with a one-time client who they say did not pay what he was supposed to in a commission fee. Litigation has been filed to recover the money. The company and the realtor filed the case against the man and his company due to a contract breach. The defendant’s company had bought an apartment building in Miami for $36 million in early November, but did not pay the 4 percent commission he was supposed to. The plaintiff says that his company was not kept apprised of what was happening with the building.
The problems stemmed from the agreement that the defendant allegedly made with the plaintiffs in May of 2016 to look for properties for the defendant to buy. In September, the defendant said that he did not need their assistance any longer because he found one that he wanted. One month later, the building was incorporated with his company retaining the title. The plaintiff says that there was a clause in the contract that entitled him and his company to $1.44 million in commission.
Since real estate is often viewed as a difficult business with numerous allegations going back and forth as to tactics, practices and how profits and debts will be allocated, it is not unusual for there to be disagreements with contracts and apparent agreements. Considering the financial weight of this deal and the claim that the defendant did not pay the commission he was supposed to, it may be a wise move for the Miami company to pursue litigation. Those who are in a similar circumstance with real estate closings, developers and other issues that are likely to come up need to know their rights and protect themselves.
Source: therealdeal.com, “New York investor allegedly skipped out on a $1.44M commission,” Francisco Alvarado, Jan. 12, 2017