Dennis and Donna Smith owned a 10-acre tract of land that they decided to sell. The couple entered into a listing agreement with Kelly McLaughlin, a licensed real estate broker. The agreement gave Kelly the exclusive right to sell the property for a period of 6 months. The Smiths agreed to pay Kelly a 6% commission of the selling price if a buyer was found during the listing period. Four months later, the Smiths sent Kelly a letter terminating the listing agreement. Kelly did not approve of the conditions. One month later, Kelly presented a full price offer to the Smiths; however, they ignored the offer and sold the property to another buyer. Kelly sued the Smiths for breach of the agency agreement. Which party wins the lawsuit? Did the Smiths act ethically in this case?
Dennis and Donna Smith owned a 10-acre tract of land that they decided to sell. The couple entered into a listing agreement with Kelly McLaughlin, a licensed real estate broker. The agreement gave Kelly the exclusive right to sell the property for a period of 6 months. The Smiths agreed to pay Kelly a 6% commission of the selling price if a buyer was found during the listing period. Four months later, the Smiths sent Kelly a letter terminating the listing agreement. Kelly did not approve of the conditions. One month later, Kelly presented a full price offer to the Smiths; however, they ignored the offer and sold the property to another buyer. Kelly sued the Smiths for breach of the agency agreement.
Which party wins the lawsuit?
Did the Smiths act ethically in this case?
Selling a property might sound exciting to get started and complete the move. The seller needs to make the property ready to list and search a real estate agent to complete the process. The process involved the completion of a listing agreement which is a document it between the seller and the real estate agent, that set out the term for the upcoming sale.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
