WILLIAM NECHTMAN, APPELLANT,
v.
LEONARD CRANE AND CORNELIA CRANE, HIS WIFE, APPELLEES
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A real estate broker appeals a judgment denying his claim for a brokerage commission. The trial court erroneously required a signed written offer to prove the purchaser was ready, able, and willing to buy. The appellate court reverses, holding that a broker is entitled to commission if he produces a ready, willing, and able purchaser on acceptable terms, even without a signed offer, if the seller defeats the transaction.
A broker is entitled to his commission if he in good faith procures a purchaser ready, able, and willing to buy on the seller's terms and the sale is defeated solely by the seller's action, even without a signed written offer, as the seller is deemed to have waived the strict contractual requirement for a signed binding contract.
[1] A real estate broker is entitled to a commission when the seller defeats a transaction, not for fault of the broker or purchaser, but solely because the seller will not o…
[2] A seller's rejection of an orally transmitted offer from a prospective purchaser, followed by a prompt sale to that same purchaser on substantially similar terms, may con…
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Join FLexlaw to unlock all legal intelligence“where a broker in good faith and in reliance upon his contract procures a purchaser ready, able and willing to buy the property in accordance with the terms fixed by the seller, and before the broker can effect the sale or procure a binding contract of purchase the seller defeats the transaction, not for any fault of the broker or purchaser but solely because the seller will not or cannot complete the transaction, then and in such case the broker is entitled to his commission”
States the correct legal rule governing when a broker earns commission despite lack of signed written offer, establishing the standard that applies in this case.
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Join FLexlaw to unlock all legal intelligenceNechtman, a real estate broker, was employed by the Cranes to find a purchaser ready, able, and willing to buy their condominium apartment on acceptab…
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The appellant is a real estate broker. He appeals a final judgment entered in favor of the defendants after a trial before the court without jury upon his claim for a brokerage commission. The appellees are the former owners of the property sold. We reverse upon a holding that the trial judge applied an erroneous rule of law to the fajcts of the case.
The issues to be tried were implicit in the complaint. The complaint alleged: (1) appellant’s employment to find a purchaser ready, able and willing to buy appellees’ condominium apartment upon terms acceptable to the appellees, (2) appellant’s production of such a purchaser, and (3) the actual sale to the purchaser upon the acceptable price and terms.
At the conclusion of the trial, the trial judge announced that he accepted the facts *821as alleged and testified to by the plaintiff-appellant, but that he could not enter judgment for the plaintiff-appellant because of a rule of law which required the production of a signed offer to purchase in order to establish that a prospective purchaser was ready, able and willing to purchase upon stated terms. This presumed rule is incorrect. The correct rule is the basis for the holding in Knowles v. Henderson, 156 Fla. 31, 22 So.2d 384, 385-86 (1945). In the Knowles case, the court stated the rule as follows:
■‘The weight of authority is to the effect that where a broker in good faith and in reliance upon his contract procures a purchaser ready, able and willing to buy the property in accordance with the terms fixed by the seller, and before the broker can effect the sale or procure a binding contract of purchase the seller defeats the transaction, not for any fault of the broker or purchaser but solely because the seller will not or cannot complete the transaction, then and in such case the broker is entitled to his commission, if the customer remains ready, able and willing to purchase, although the sale has not been fully completed; the strict terms of the contract between principal and broker as to completing the sale or procuring a binding contract of purchase from the customer being deemed waived by the principal.”
[Emphasis supplied]
The record on this appeal contains competent and sufficient evidence upon which the trial judge could have found that the defendants-appellees as owners first rejected appellant’s orally transmitted offer from the ultimate purchaser but then quickly entered into contract and sold the condominium to him upon substantially the same terms. If the trial court should determine that this is what transpired, then it should find under the quoted rule that the owners waived the submission of a signed offer in writing.
Reversed and remanded for a new trial.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Authorities Cited
- Knowles v. Henderson, 156 Fla. 31 (Fla. 1945)
- Allie Gregory Sink v. Treadwell, 156 Fla. 31 (Fla. 1945)