KEYES NATIONAL INVESTORS, INC., A FLORIDA CORPORATION, APPELLANT,
v.
PINE-CONE PROPERTIES, INC., A FLORIDA CORPORATION, ET AL., APPELLEES

Fla. 3d DCA | 1975-12-16
No. 75-258
Before HENDRY, HAVERFIELD and NATHAN, JJ.
324 So. 2d 107 Florida District Court of Appeal, Third District (1975) Positive Treatment
Cited by 2 cases

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Synopsis

A real estate broker appeals adverse judgments after failing to recover a $215,000 commission for allegedly procuring a purchaser for a $10.75 million rental property. The court affirmed, holding that the broker failed to prove the purchaser had sufficient financial ability to complete the purchase.


Holding

The broker failed to meet its burden of proving the purchaser's financial ability. A realtor must show proof that a prospective purchaser is financially able to command the necessary funds to close on reasonable notice at the agreed-upon time. The evidence here—a $93,000 loan and attorney fees—was insufficient to demonstrate available funding sources for a $10.75 million purchase.


Headnotes

[1] A real estate broker is not entitled to a commission unless they prove the prospective purchaser was financially able to close the deal.

[2] A loan made by a prospective purchaser to the seller and payment of attorney fees are insufficient to demonstrate the purchaser's financial ability to complete a multi-mi…

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Key Quotes

“before a realtor may be entitled to a commission, he (or she) is required to show some proof that the person who would be the purchaser is financially able to command the necessary money to close the deal on reasonable notice at the agreed upon time”

States the legal standard a broker must satisfy to recover a commission

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Facts & Procedural History

Keyes National Investors, a real estate broker, claimed it had an oral listing agreement with defendants to sell 'The Village' apartments for a 2% com…

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Opinion of the Court
PER CURIAM.

PER CURIAM.

Plaintiff real estate broker appeals a summary judgment entered in favor of the individual defendants and a directed verdict for the corporate defendants in an action to recover a commission.

Keyes National Investors, Inc. filed a complaint to recover a real estate brokerage commission and named as defendants Pine-Cone Properties, Inc., Lauderdale Lakes Construction Co., The Village Apartments, Sherman Chassen, Sylvia Chassen, Morton Pine and Ruth Pine. The complaint alleged (1) that defendants had retained Keyes to obtain a purchaser for the rental complex known as “The Village;” (2) that pursuant to the oral listing agreement, Keyes was to be paid 2% of the purchase price as a fee for its services; (3) that Keyes procured a purchaser, the Fusco Corporation, ready, willing and able to purchase the property for $10,750,000 to which defendants allegedly agreed; and (4) that defendants refused to pay Keyes the sum of $215,000, the agreed commission. The Village Apartments, Sherman and Sylvia Chassen, and Morton and Ruth Pine filed a motion for summary judgment on the grounds that they did not hold equitable or legal title to the property, and at no time did they enter into a contract with Keyes. This motion was granted and the cause proceeded to trial as to Pine-Cone Properties, Inc. and Lauderdale Lakes Construction Co. At the close of plaintiff Keyes’ case, these two defendants filed a motion for directed verdict for the reasons that (1) a purchaser was not produced on terms acceptable to the defendant sellers, and (2) Keyes failed to prove that the purchaser was financially able to make the purchase. The trial judge granted the motion for directed verdict.

The rule is that before a realtor may be entitled to a commission, he (or she) is required to show some proof that the person who would be the purchaser is financially able to command the necessary money to close the deal on reasonable notice at the agreed upon time. Sharp v. Long, Fla.App. 1973, 283 So. 2d 567; Chan-ton v. Drucker, Fla.App. 1974, 299 So. 2d 145 and cases cited therein.

We note that the purchase price allegedly agreed to by the parties is in excess of $10,000,000. The record referring to Fusco Corporation’s financial ability is primarily based on a loan of $93,000 it made to defendant sellers and payment to its Miami attorney of $7,500 to $9,000 in fees. We conclude this was insufficient to show an available source of funds for Fus-co Corporation to make the purchase.

We also considered appellant’s contention with regard to the entry of the summary judgment in favor of the remaining defendants and have determined it to be without merit.

Affirmed.


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Citator

Cited By

  • Harold and Dorothy Sticht v. Shull, 543 So. 2d 395 (Fla. 4th DCA 1989)
    …recover a commission for producing a purchaser, he must prove that the proposed purchaser was ready, willing and able to close the deal. Sharp v. Long, 283 So. 2d 567 (Fla. 4th DCA 1973); Keyes National Investors, Inc. v. Pine-Cone Properties, Inc., 324 So. 2d 107 (Fla. 3d DCA 1975); Chanton v. Drucker, 299 So. 2d 145 (Fla. 3d DCA 1974). With regard to proving the ability of the purchaser to close, the proof must show that the purchaser can command the necessary money to close on reasonable notice or within t…

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