Court Opinion

ID: 9713740
Source: CourtListenerOpinion
Date Created: 2023-08-26 05:21:32.585201+00
Date Added: 2024-06-11T18:23:20.240837
License: Public Domain

ANDERSON, Russell A.
(dissenting).
Because the majority ignores both the intent of the legislature and our longstanding precedent, I respectfully dissent. Chapter 82 of the Minnesota Statutes is a comprehensive and mandatory statutory scheme for the regulation of real estate brokers and salespersons.1 No person is *333to act as a real estate broker, salesperson, or real estate closing agent unless licensed. Minn.Stat. § 82.19, subd. 1 (2002). In fact, we have made clear that an unlicensed real estate broker may not maintain an action for the collection of a commission. Relocation Realty Services Corp. v. Carlson Companies, Inc., 264 N.W.2d 643, 645 (Minn.1978); accord Dellwood Enter., Inc. v. Pac. Am. Real Estate Fund, 505 F.Supp. 187, 189 (D.Minn.), ajfd, 653 F.2d 350 (8th Cir.1981).
In addition to requiring a license to maintain an action such as this, brokers, such as Rosenberg, are required to obtain a signed listing agreement that includes, among other things, “a clear statement explaining the events or conditions that will entitle a broker to a commission.” Minn.Stat. § 82.195, subd. 2(5) (2002). A broker “shall not” seek to enforce an override clause unless a protective list has been furnished to the seller within 72 hours after the expiration of the listing agreement. Minn.Stat. § 82.195, subd. 4 (2002). See also Douglas v. Schuette, 607 N.W.2d 142, 145 (Minn.App.2000); Lynn Beechler Realty Co. v. Warnygora, 396 N.W.2d 717, 720 (Minn.App.1986). The length of the override provision may not extend more than 6 months beyond the expiration of the listing agreement and, with exception not applicable here, a broker “shall not” include in a listing agreement a holdover clause, automatic extension, “or any similar provision * * *.” Minn.Stat. § 82.195, subd. 3 (2002).
The majority apparently believes that beneath these clear and comprehensive statutory requirements and prohibitions is a surviving common law equitable remedy which allows a broker to recover a commission when the broker is the procuring cause of a sale completed after termination of the listing agreement. In my view, the majority has read into this listing agreement a “similar provision” to an override clause that the legislature has clearly prohibited. See Minn.Stat. § 82.195, subd. 3. The listing agreement that Rosenberg seeks to enforce has no override clause that would allow, upon proper notice, recovery of commissions after termination of the listing agreement. The common law principle relied upon by the majority is nowhere referenced in the listing agreement, which, according to statute, must contain “a clear statement explaining the events or conditions that will entitle a broker to a commission.” Minn.Stat. § 82.195, subd. 2(5). Wh,en the legislature provides that events or conditions that will entitle a broker to a commission must be explained in a “clear statement” in the listing agreement, I would conclude that a common law claim, neither mentioned nor explained by a clear statement in a listing agreement, is barred.
The majority relies on a specific (and since amended) section of chapter 82 for the proposition that the legislature intended no portion of chapter 82 to abrogate the common law. The section cited by the majority, however, Minn.Stat. § 82.197, subd. 3 (2002), by its very terms applied *334only to “the requirements for disclosure of agency relationships set forth in this chapter.” (Emphasis added.) Because the dispute before us does not involve the disclosure of an agency relationship, but rather the adequacy of the listing agreement, Minn.Stat. § 82.197 is wholly irrelevant.
By his own admittance, Rosenberg, a licensed real estate broker with over 20 years of experience, failed to comply with the express statutory provisions that would allow entitlement to a commission after termination of the listing agreement. See Marks v. Walter G. McCarty Corp., 33 Cal.2d 814, 205 P.2d 1025, 1030 (1949) (“The plaintiff [a licensed real estate broker], a man of experience in this line of business, knew how to protect himself in the transaction but failed to do so.”). I would not enforce a remedy that the legislature has prohibited. I respectfully dissent.
BLATZ, C.J. (dissenting).
I join in the dissent of Justice Russell A. Anderson.

. There can be no disputing the fact that licensed real estate brokers are required to comply with the provisions of chapter 82. The mandatory nature of Minn.Stat. § 82.195 (2002) is evidenced by the terms utilized by the legislature:
Subdivision 1. Requirement. Licensees shall obtain a signed listing agreement or other signed written authorization from the owner of real property * * *.
Subd. 2. Contents. All listing agreements must be in writing and must include: (1) a definite expiration date;
⅝ * * *
(5) a clear statement explaining the events or conditions that will entitle a broker to a commission;
(6) information regarding an override clause, if applicable, including a statement to the effect that the override clause will not be effective unless the licensee supplies the *333seller with a protective list within 72 hours after the expiration of the listing agreement;
Subd. 3. Prohibited transactions. Except as otherwise provided in subdivision 4, paragraph (b), licensees shall not include in a listing agreement a holdover clause, automatic extension, or any similar provision, or an override clause the length of which is more than six months after the expiration of the listing agreement.
Subd. 4. Override clauses, (a) Licensees shall not seek to enforce an override clause unless a protective list has been furnished to the seller within 72 hours after the expiration of the listing agreement.
Minn.Stat. § 92.195 (2002) (emphasis added).