Broker sought to recover commission or finder’s fee of $1,250,000.
A NY Broker, who was not registered or licensed as real estate broker in Florida, brought an action against the purchaser of real property in Florida seeking to recover a brokerage commission or finder’s fee of $1,250,000. Plaintiff alleged that it was the procuring cause of Defendant’s $50 million real estate purchase and was entitled to a 2.5% commission.
It does appear that the Plaintiff was substantially involved with the location and procurement of the property. However, the Court granted the defendant’s motion to dismiss. The Court found that Florida law applied, since the subject transaction involved Florida real estate owned by Florida entities and the broker seeking a commission performed acts in that jurisdiction. The Florida Real Estate Licensing Act prohibits a person from operating as a broker or sales associate without being the holder of a real estate broker’s license. Moreover, finders must also be licensed under Florida law.
Therefore, the Court found that neither the plaintiff nor the broker in question was registered or licensed as a real estate broker in Florida and that precluded payment of a commission.
HALSTEAD PROPERTY LLC, Plaintiff, v. THOR URBAN INVESTMENTS LLC, Defendant.