Court Opinion

ID: 9701820
Source: CourtListenerOpinion
Date Created: 2023-08-25 22:39:29.333141+00
Date Added: 2024-06-11T15:09:40.875790
License: Public Domain

Kenison, C.J.,
dissenting: Leading authorities in contract and property law have recognized that suits for real estate brokers’ commissions “are among the most common on the dockets of our trial courts.” A. Casner & W. Leach, Cases and Text on Property 683, 683-85 (2d ed. 1969); 1 A. Corbin, Contracts § 50 (1950). See also 7 R. Powell, Property § 938.13 at 370.143-.150 (1977); 23 Rutgers L. Rev. 83, 83 (1968). Unlike brokers, many sellers are involved in real estate transactions infrequently, perhaps only once in a lifetime, and are thus unfamiliar with the intricate legalities relating to commissions. Tristram’s Landing, Inc. v. Wait, 327 N.E.2d 727, 731 (Mass. 1975). Too often unwary sellers are compelled to pay commissions in situations in which they quite reasonably anticipated no liability.
The defendant sold the property at a reduced price and did not know that the purchasers had previously dealt with the broker. Under these circumstances, the plaintiffs are not entitled to a commission. Hamilton v. Taylor, 249 S.W.2d 730 (Ky. 1952); Dragone v. Dell’Isola, 332 Mass. 11, 122 N.E.2d 892 (1954); King v. Dean, 19 Ohio St. 2d 17, 249 N.E.2d 45 (1969); Pate v. Milford A. Scott Real Estate Co., 132 Ga. App. 49, 207 S.E.2d 567 (1974); Annot., 46 A.L.R.2d 848, 872-77 (1956); Annot., 142 A.L.R. 275, 282-86 (1943). The case of Philbrick v. Chase, 95 N.H. 82, 58 A.2d 317 (1948), does not require that the defendant pay the commission. In that case the owner sold the property for the full price, that is, *512a price which included the money she would have had to pay as commission. In holding for the broker, the court specifically limited its ruling to situations in which the owner is not prejudiced in some way by his ignorance. Id. at 85, 58 A.2d at 319. In the instant case the defendant was prejudiced because he sold the property for substantially less than that for which the broker was told to ask. To make the defendant pay the commission out of the lower selling price would be inequitable.
The problem in this case could have been easily avoided if the plaintiffs had notified the defendant that the Pickfords had been shown the house. Imposing this duty upon brokers is not unduly burdensome. Such a rule would provide the necessary protection for the seller and would place the burden upon the professional broker where it belongs. Tristram’s Landing, Inc. v. Wait, 327 N.E.2d at 731.
Douglas, J., concurs in this opinion.