Can a real estate broker dictate what kind of purchase agreement is used for a commercial property?

A seller and I drafted a purchase agreement for a commercial property but my wife is a licensed real estate agent. Her broker refused to use our purchase agreement and demanded we would use a pre-printed form from his office which cost the seller to get cold feet and back out of the sale costing us a lot of money. Is a broker allowed to dictate what purchase agreement is used between buyer and seller? Since that cost the seller to get cold feet and

cancel, what liability does the broker half in a situation like this.

Asked on June 8, 2017 under Real Estate Law, Minnesota

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

The broker has the right to say that they will not be involved in a transaction unless you use a certain form of contract, particularly if they feel that the contract you proposed using was flawed or even illegal in some way, and so they could be exposed to liabiltiy for facilitating a sale using it. A broker cannot be forced to do something against its professional judgment or interests. Therefore, since the had the right to refuse to move ahead unless you used a different form, they are not liable for the seller deciding to not go ahead with the transaction; people and business are not liable when they do what they have a legal right to do.


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