According to multiple news outlets, Echo Fine Properties brokerage in south Florida was awarded $24,000 in damages against a buyer who breached their buyer-broker agreement.  The buyer hired the brokerage to be their exclusive representative in purchasing a home.  Echo Fine Properties claimed they honored the agreement by educating the buyer on home values in the area and took the buyer and his family to view homes. 

The brokerage then discovered the buyer had presented a written offer to purchase a property with a competing agent and notified the buyer that they were in violation of the buyer-broker agreement. The buyer ignored the communication and Echo Fine Properties filed for arbitration after the transaction closed.

The arbitrator determined the buyer-broker agreement was enforceable because its terms were unambiguous and clear.  Although the buyer claimed he should not be bound to the contract because he failed to read the agreement, the arbitrator found that defense unpersuasive along with the buyer’s other arguments that the 180-day term was “excessive” and the brokerage’s representation provided little or no benefit.  In short, the buyer-broker agreement was valid, the buyer breached the agreement by purchasing a home using another broker, and the buyer was liable for paying the full agreed-upon amount of $24,000.

Aaron M. Green, Esq., a licensed Arizona attorney, is the General Counsel for the Arizona Association of REALTORS®.  This article is of a general nature and reflects only the opinion of the author at the time it was drafted.  It is not intended as definitive legal advice, and you should not act upon it without seeking independent legal counsel.