Opinion ID: 901823
Heading Depth: 1
Heading Rank: 5

Heading: Terms of the Listing Agreement

Text: [¶ 7.] One obligation in the listing agreement provides that the seller pay a commission to the broker [i]f during the period of [the] agreement, the Seller, Broker, a cooperating broker, or anyone else sells the property or produce[s] a purchaser ready, willing and able to purchase the property. The agreement also requires the seller to pay a commission within 180 days after the contract [expires] if the property is sold to any person to whom the property has been shown during the listing period. The contract, in relevant part, provides: If during the period of this agreement the property is sold by Seller, Broker, a cooperating broker, or anyone else; or should any of the above produce a purchaser ready, willing and able to purchase the property; or within 180 days after the expiration of this contract, a sale is made to any person to whom the property has been shown during the listing period; Seller agrees to pay a fee for professional services of ___ OR 5.00 percent of the selling price plus appropriate sales tax. Seller further agrees that Broker or Broker's authorized representative may act as escrow agent for all money, papers, and documents associated with this transaction. If this property is listed with another licensed real estate broker after expiration of this listing, this contract shall be null and void in its entirety. [¶ 8.] Hanson sold the property to Trask within 180 days after the contract expired. The parties disagree as to what constitutes a showing of the property under the agreement. Ensz admits he did not actually show the ranch to Trask, in the sense of viewing the property. Ensz claims, however, that Trask knew about the property because he rented part of the ranch and lived nearby. Consequently, Kjerstad Realty argues an actual escort to the property to see it was unnecessary and Ensz's contact with Trask on January 20, 2007, satisfied its obligation under the agreement and entitled it to a commission. [¶ 9.] The listing agreement does not define showing, and only one other provision in the listing agreement refers to showing the property. This reference is in a portion of the agreement that discusses how the broker must act in the event the broker represents both buyer and seller. This provision does not clarify what the parties meant by the term showing. It merely provides that [b]roker will act, with Seller's consent ... when showing Seller's property to buyer client(s) of broker. [¶ 10.] Bootjack, pointing to Prudential Kahler Realtors v. Schmitendorf, claims the meaning of the term to show is its plain and ordinary meaning of to cause or allow to be seen; display. 2003 SD 148, ¶ 10, 673 N.W.2d 663, 666. In Prudential Kahler Realtors, the broker sought a commission after the seller sold property within the listing agreement's 360-day tail period. The listing agreement provided that if the property was sold within the listing agreement period, or if within[] 360 days after the expiration of this agreement, the property is sold to any person to whom the property was shown the seller agrees to pay a commission of 9% of the sales price plus required sales taxes and applicable transaction fees[.] Id. ¶ 2 n, 673 N.W.2d at 664 n (emphasis in original). As in the present case, the seller in Prudential Kahler Realtors argued the property was not shown to the buyer by the seller's realtor. Id. ¶ 9. That case was tried to the circuit court. Based on the facts, the circuit court determined that although the buyer reviewed certain written materials including the financials provided by [seller's] realtor, such a review was not a showing and did not entitle the broker to a commission. Id. ¶ 10. [¶ 11.] On review of the record, we determined in Prudential Kahler Realtors that the circuit court's finding was not clearly erroneous. In interpreting the term showing in the contract, we said [i]n cases such as this one where the parties to a contract cannot agree on the interpretation of a word in the contract, this Court will apply the `plain and ordinary meaning' of the disputed term. Id. We determined the plain and ordinary meaning of shown was `to cause or allow to be seen; display.' Id. (quoting American Heritage College Dictionary 1262 (3ded.1997)). Thus, whether there was a showing was a question of fact. It was undisputed the broker never personally spoke with [buyer]. Id. ¶ 11.