Another situation stemming from the deteriorating housing market in the once-hot housing market in South Florida is a case against a group of real estate practitioners for the three percent commission paid them on 24 condos prior to the sale. (Prior to the sale? That certainly wasn’t happening here in Ohio.)
The sales failed to close or the buyers defaulted and the condo developer is suing for the money paid to these brokers. The brokers are countersuing saying that it was the developer’s fault that the sales fell through. To make the situation even murkier, the contract with the brokers doesn’t spell out what happens to the commission if the event the sale does not materialize. In addition, many of the individual agents to whom to money was distributed, no longer work for the brokerages.
To read, the whole story, see this post by “Realty Magazine.”