A Miami-Dade County, Florida developer, Related Group, has filed multiple lawsuits in the past month against real estate brokerages seeking the return of commissions on deals that fell through. The amount in controversy, which exceeds $460,000.00, is tied to commissions advanced by Related Group to the named-defendant brokerages on at least 19 sales contracts in the Hallandale Beach Club Tower III project. Related Group is alleging breach of contract in these actions for the brokerages’ failure to return commissions paid on deals that never closed.
Apparently, is it routine practice for Related Group to pay commissions once prospective buyers have given a deposit, rather than waiting until the transaction formally closes. Under Florida law, the commissions are paid to the broker of record, who then pays the agent of record in accordance with the agent and broker’s agreed upon compensation split. The broker registration agreements […]
Original post by Joshua M. Marks, Esq. and software by Elliott Back
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