Real Estate Broker Loses Million Dollar Commission

On October 17, 2014, in Real Estate, by Robbie L. Vaughn, Esq.


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.


    Comments are closed.

    The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. This website is Attorney Advertising. It does not form an attorney-client relationship. We are a debt relief agency and a law firm that helps people file for bankruptcy relief under the U.S. Bankruptcy Code – Title 11. Prior results do not guarantee a similar outcome. Proudly assisting residents of Long Island, Nassau county, Suffolk county, New York City, Queens, Brooklyn, Bronx, Staten Island, Manhattan

    Copyright © 2019 Law Firm of Vaughn, Weber and Prakope, PLLC
    All Rights Reserved