Avoiding costly litigation with real estate brokers

Long, costly real estate litigation can be avoided by owners

, buyers and lessors if they take a simple precaution. The precaution can be writing down the agreement. The terms of agreement between the principal and broker should be clear. This is important from the point of view of avoiding dragging the case to the court and fighting a costly legal battle by hiring a real estate attorney. A law governs the amount of brokerage commissions that need to be paid to the brokers in New York and this is why the agreement has to be clear between the two parties. According to the law in New York, even the oral brokerage agreements are acceptable as well as enforceable. The brokers are entitled to get a commission for the procured deals even if the deal doesn't get closed.

Once the agreement is signed, the terms and conditions of the commission are ignored by both the parties. The parties involved should look into the documents carefully because the income of the broker is dependent on the agreement. There have been a number of real estate litigation cases recently that put light on the importance of the clear terms and agreements regarding commission.

You might be forced to pay commissions if you do not know what is written in the agreement. The broker can drag you to the court and with the help of a real estate lawyer, he can demand commission. It can be that the agreement does not have any expiry date. In this case, you will be forced to pay the commission to the broker and you will not be able to say no even if you argue. If you agree with the broker over some conditions, make sure that they are included in the final written agreement as well. If the broker misses to do include those terms, you will not be able to prove to the court that you agreed upon different conditions. The judges or any real estate lawyer will not write the agreement again to help you and this is why you should make sure that the language of the terms is clear to both the parties.

Simply filing a negotiated contract is not fine as the parties cannot argue on the basis of the fact that they forgot the terms or the agreement itself. If you cannot remember all the conditions, just remember the important ones that relate to termination of the contract, compensation to be paid and the performance. The judges around the nation would not allow you to make any changes in the agreement once you have signed it. Also, the parties are not allowed to ignore the terms of the agreement.

The number of such disputes is on a rise. While some disputes are solved out of the court, some go for further real estate litigation. To avoid the legal hassles involved, the brokers and the buyers have to be careful. They should put in more time to writing the agreement and finalizing the terms and conditions. This is by far, the best way to prevent any disputes. If you are stuck in an unavoidable litigation, the best thing to do would be to hire a real estate attorney and consult him.

Avoiding costly litigation with real estate brokers

By: Mike Smith

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