FACTS:

The agent agreed to represent the buyer. As part of the representation, the buyer signed a Buyer-Broker Agreement. The agent also signed and delivered a fully-executed copy of the agreement to the buyer. During the term of the Buyer-Broker Agreement, the buyer stopped communicating with the agent and ultimately purchased the property through her sister, who was an agent.

ISSUE:

May the agent sue the buyer for the commission based on the Buyer-Broker Agreement?

ANSWER:

Yes. Generally, a Buyer-Broker Agreement must be signed by all parties and delivered to be enforceable. Here, the Buyer Broker Agreement was enforceable and the buyer breached the agreement by utilizing the services of her sister to purchase the property. Accordingly, the agent may pursue the buyer for the commission based on the breach of the Buyer-Broker Agreement.

Arizona REALTOR® Magazine – March 2014 | Commissions