Question

Broker Jones secured an agency listing in writing from the Johnson Co. on a commercial building that had been vacant for some months. The listing broker entered into a verbal agreement to share his commission with a cooperating broker. The cooperating broker procured a buyer, but Broker Jones refused to split the commission. The cooperating broker:

Answer 1

A cooperating broker who had a verbal agreement to receive a share of the commission from Broker Jones for procuring a buyer might have legal recourse to claim their share, but this would depend on the enforceability of verbal agreements in the specific jurisdiction and real estate laws.

Step-by-step explanation:

The subject of this question revolves around a dispute in a real estate transaction, specifically concerning broker commission sharing. In this scenario, Broker Jones had a written agency listing with the Johnson Co. and made a verbal agreement with a cooperating broker to share his commission. When the cooperating broker successfully found a buyer, Broker Jones reneged on his agreement to share the commission. If the verbal agreement can be substantiated, the cooperating broker might have a legal recourse to claim their share of the commission. However, the enforceability of verbal agreements can vary based on jurisdiction and specific real estate laws. It is typically advisable to have such agreements in writing to avoid disputes. Since verbal agreements can be binding, the cooperating broker should consult with a lawyer to determine the best course of action.