Can a real estate broker dictate what kind of purchase agreement is used for a commercial property?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
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 7 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.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.